What is the difference between Depreciation Depletion and Amortization

What is the difference between depreciation, amortization and depletion?

Uncategorized May 25, 2022
 

The one thing that Depreciation, Amortization and Depletion all have in common is that they all refer to Assets. More specifically, they record the value of an asset that gets used up over time.

Depreciation specifically refers to most tangible assets such as equipment and automobiles, but such tangible assets specifically exclude natural resources.

Depletion is the form of depreciation that refers to natural resource assets such as mines, gravel pits, oil wells and the such.

Finally, Amortization is a form of depreciation that applies to intangible assets that you cannot touch or feel, such as goodwill.

Close

50% Complete

You're almost done!

Enter your first name and email address to access our
FREE eBook - Effective Business Strategies.

Whether you're thinking about starting a business,
have recently started, or are well established,
implementing these strategies are sure to get you
BIG results!