Question

Match the followings:

List I	List II
A. Amortization	1. Diminution in the life of the asset due to excessive use
B. Depreciation	2. Exhaustion of natural resources
C. Depletion	3. Expiration of tangible assets
D. Obsolescence	4. Expiration of intangible assets
	5. Economic deterioration due to improved inventions

• A. $A=1,B=2,C=3,D=4$
• B. $A=1,B=2,C=4,D=5$
• C. $A=5,B=2,C=3,D=4$
• D. $A=4,B=3,C=2,D=5$

Answer 1

Answer: (D)

$A=4,B=3,C=2,D=5$

Option D is the correct one.

1. Depreciation charged on fixed tangible assets.ex. Machinery, Furniture, etc

2. Amortization charged on fixed intangible assets. ex Goodwill copyright etc

3. Depletion charged on natural resources ex. coal mines etc

4. Obsolescence is economic deterioration due to improved inventions.