The term depletion applies to decrease in value of ______?

Accounting / Accounting MCQs — Multiple-choice practice

اصطلاح کی کمی ______ کی قیمت میں کمی کے لئے لاگو ہوتی ہے؟

  1. A. None of these
  2. B. Current asset
  3. C. Tangible asset
  4. D. Wasting asset

Correct answer

Wasting asset

Explanation

Explanation Depletion refers to the gradual reduction in the value of natural resources like minerals, oil, or timber as they are extracted or used. Unlike depreciation (which applies to tangible fixed assets), depletion specifically applies to wasting assets that diminish over time due to consumption.

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