In the case of wasting Assets, the amount of charge determined on the basis of exhaustion of the assets is know as __________.

Depreciation.

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Depletion.

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Amortization.

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Shrinkage.

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Solution

The correct option is B Depletion.
Depreciation is used for fixed assets where for wasting assets, the amount of charge determined on the basis of exhaustion of the assets is know as Depletion.

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Similar questions

Q. In the case of wasting assets, the amount of charge determined on the basis of exhaustion of the assets is known as __________.

Q. Which of the following statements is/are false?
I. The term 'depreciation', 'depletion' and 'amortization' convey the same meaning.
II. Provision for depreciation a/c is debited when provision for depreciation a/c is created.
III. The main purpose of charging the profits and loss a/c with the amount of depreciation is to spread the cost of an asset over useful life for the purpose of income determination.

A company has to disclose depreciation provided on fixed assets and amortization of intangible assets under ___

Amortization of intangible assets and depletion of natural resources is conceptually similar to depreciation of constructed assets. Is the statement correct?

Q. Depreciation is a ________ shrinkage in the book value of a fixed asset.

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In the case of wasting Assets, the amount of charge determined on the basis of exhaustion of the assets is know as __________.

The correct option is B Depletion.Depreciation is used for fixed assets where for wasting assets, the amount of charge determined on the basis of exhaustion of the assets is know as Depletion.

The correct option is B Depletion.
Depreciation is used for fixed assets where for wasting assets, the amount of charge determined on the basis of exhaustion of the assets is know as Depletion.