ACC 291 week 2 DQ 1

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ACC 291 week 2 DQ 1

What are the differences among valuation, depreciation, amortization, and depletion?

Is it appropriate to calculate depreciation using two different methods? Why?

What does the Annual Report you are using for class say about depreciation?

Depreciation, depletion and amortization are used as a basis to allocate the historical cost of an asset over its useful live in order to conform with the idea that earnings of the company are matched accordingly with relative expenses to include the wear and tear of the assets. Depreciation is used with reference to tangible fixed assets because the permanent continuing and gradual fall in book value is possible only in the case of fixed assets. Depletion is the allocation of a wasting asset's depletable cost over the period where natural recourses...

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