Question

• explain the meaning of
depreciation and
distinguish it from
amortisation and
depletion;
​

Answer 1

Explanation:

Depreciation spreads out the cost of a tangible asset over its useful life, depletion allocates the cost of extracting natural resources, such as timber, minerals, and oil from the earth, and amortization is the deduction of intangible assets over a specified time period; typically the life of an asset.

Answer 2

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depreciation ==> Definition: The monetary value of an asset decreases over time due to use, wear and tear or obsolescence. This decrease is measured asdepreciation. ... Opposite ofdepreciation is appreciation which is increase in the value of an asset over a period of time.

Depreciation spreads out the cost of a tangible asset over its useful life,depletion allocates the cost of extracting natural resources, such as timber, minerals, and oil from the earth, and amortization is the deduction of intangible assets over a specified time period; typically the life of an asset.