Which depreciation method is most like the method that is used to calculate depletion of natural resources?
A)straight-line
B)double-declining balance
C)activity
D)No depreciation method is similar to depletion.

Question

Quizplus · Accepted Answer

The activity method is most like the method used to calculate depletion of natural resources. Both methods consider the amount of the resource used each period and adjust the depreciation/depletion expense accordingly. Straight-line and double-declining balance methods do not take into account the amount of resource used and are based on a fixed rate of depreciation.

Which Depreciation Method Is Most Like the Method That Is