Question

Difference between depreciation and amortization and depletion

Answer 1

Amortization usually refers to spreading an intangible asset's cost over that asset's useful life and on the other hand the depreciation refers to prorating tangible assets's cost over that assets's useful life and depletion refers to the allocation of the cost of natural resources over time.......

Answer 2

Amortization. Prorating cost of an “Intangible Asset” over the period during which benefits of this asset are estimated to last is called Amortization. The concept of amortization is also used with leases & debt repayment. Amortization is for Intangible assets whereas depreciation is for tangible fixed assets.