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The method used to calculate the depletion of a natural resource is the straight-line method.
Depletion
The systematic allocation of the cost of natural resources over their productive lives is known as depletion, reflecting the reduction in the availability of resources as they are extracted or utilized.
Natural Resource
Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.
Straight-Line Method
A depreciation technique that allocates an equal amount of an asset's cost to each year of its useful life.
- Differentiate the treatment in accounting for tangible assets versus intangible assets, especially in terms of amortization and accounting for research and development expenses.
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Learning Objectives
- Differentiate the treatment in accounting for tangible assets versus intangible assets, especially in terms of amortization and accounting for research and development expenses.
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