Question

Depreciation, depletion, and amortization: Multiple Choice All refer to the process of allocating the cost of long-term assets used in the business over future periods. All generally use the same methods of cost allocation. Are all handled the same in arriving at taxable income. All of these answer choices are correct.

Answer 1

Answer:

All refer to the process of allocating the cost of long-term assets used in the business over future periods.

Explanation:

Depreciation is charged on fixed assets to allocate the cost of fixed assets over the period,

Depletion is generally a kind of depreciation charged over mining, oil extracting, petroleum, or similar industries on the right of extraction,

Amortization is also like depreciation but it is charged on intangible assets, to meet the cost of acquisition of intangibles, like goodwill, license, copyrights, trademarks etc: