Depletion is:
A)The process of allocating the cost of natural resources to the period when it is consumed.
B)Calculated using the double-declining balance method.
C)Also called amortization.
D)An increase in the value of a natural resource when incurred.
E)The process of allocating the cost of intangibles to periods when they are used.

Question

Quizplus · Accepted Answer

Depletion is the process of allocating the cost of natural resources to the period when it is consumed or extracted. This is done to reflect the reduction in the quantity or quality of the natural resource over time. Option B, C, D, and E are not accurate definitions of depletion.

Depletion Is