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Depreciation MCQs
What is Depletion?
19. What is Depletion?
- Accounting techniques are used to periodically lower the book value of a loan.
- Notable reduction in the utility of an inventory item or fixed asset.
- Accrual accounting technique used to allocate the cost of extracting natural resources.
- The loss in the physical efficiency of an asset as it ages.
Answer: C) Accrual accounting technique used to allocate the cost of extracting natural resources.
Explanation:
Depletion for bookkeeping and monetary announcing objects is intended to aid in precisely recognizing the worth of the resources on the accounting report and recording costs in the fitting period on the pay articulation.