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Commerce · Q186

Accounting

Graduate and Post Graduate · Commerce · question 186

Q186

The term _______ is generally used for the depreciation of natural resources

A.
Amortization
B.
Depletion
Answer
C.
Appreciation
D.
Disposal value

Answer: Option B

Solution

Answer: Option B
Solution:
The term Depletion is generally used for the depreciation of natural resources. Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources such as timber, minerals, and oil from the earth.