Is amortisation also called depletion?

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Solution

Amortisation and depletion are two different concepts as amortisation is applicable to intangible assets such as goodwill, patents and trademarks while depletion is applicable to mineral assets such as coal, oil, timber etc.

Also read:

True and False Questions on Depreciation

What Is Depreciation

MCQs on Depreciation

What Is a Fixed Asset

MCQs on Goodwill

Intangible Assets

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List-I	List-II
I. Amortisation	(a) Diminition in the life of the assets due to excessive use
II. Depreciation	(b) Exhaustion of natural resource
III. Depletion	(c) Expiration of tangible assets
IV. Obsolescence	(d) Expiration of intangible assets
	(e) Economic deterioration due to improved inventions

Amortisation is the decrease in the value of _________ .

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