What is the term used for the specific depreciation of lands purchased as natural resources for a productive activity?
A) Depreciation
B) Depletion
C) Amortization
D) Impairment

Question

Quizplus · Accepted Answer

Depletion is the specific term used for the depreciation of lands purchased as natural resources for a productive activity, such as oil rigs, mines, or timberlands. This is because the natural resources are being gradually used up or depleted over time. Depreciation (option A) is a more general term that refers to the gradual decrease in value of any asset over time, while amortization (option C) is used for intangible assets like patents or copyrights. Impairment (option D) refers to a sudden and significant decrease in the value of an asset.

What Is the Term Used for the Specific Depreciation of Lands