Multiple choice

Directions: Choose the correct option for the given question.

Which of the following methods for providing depreciation is not a calendar year method?

  1. Sum of the Year Method

  2. Depletion Method

  3. Fixed Installment Method

  4. None of these
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

The Depletion Method is specifically used for natural resources like mines, oil wells, and quarries. Unlike calendar year methods that allocate depreciation evenly over time, depletion is based on actual extraction or usage of the resource, making it usage-based rather than time-based.

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