What is the difference between depletion and depreciation?

Open in App

Solution

Depletion is used for measuring the systematic reduction in the value of mineral assets or natural resources while depreciation is used for measuring the systematic reduction in the value of the fixed assets or tangible assets.

Also read:

True and False Questions on Depreciation

What Is Depreciation

MCQs on Depreciation

What Is a Fixed Asset

MCQs on Goodwill

Learn about more questions and answers on business studies and various other commerce topics from our website.

Suggest Corrections

Similar questions

Q. Answer the question.
What is the difference between Depreciation, Depletion and Amortisation?

Q. what is meant by depletion in terms of depreciation

Q. _____________ is/are subject to depletion rather than depreciation.

Q. For charging depreciation, on which of the following assets, the depletion method is adopted?

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

Join BYJU'S Learning Program