Depreciation, depletion, and amortization:
A) All refer to the process of allocating the cost of long-term assets used in the business over future periods.
B) All generally use the same methods of cost allocation.
C) Are all handled the same in arriving at taxable income.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Depreciation, depletion, and amortization all refer to the process of allocating the cost of long-term assets used in the business over future periods. While they may use similar methods of cost allocation, each relates to a specific type of asset and may have unique rules for calculation. Additionally, they may be handled differently for tax purposes.

Depreciation, Depletion, and Amortization