Briefly Explain the Differences Between the Terms Depreciation, Depletion, and Amortization

question 180

Essay

Briefly explain the differences between the terms depreciation, depletion, and amortization.

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Definitions:

Capital

The wealth, whether in money or assets, owned or employed in business by an individual, firm, corporation, etc.

Venture

An endeavor or project that involves risk but is pursued with the expectation of future gains.

Crowdfunding

The method of supporting a project or business by collecting minor contributions from a vast number of individuals, usually through the internet.

Money

A medium of exchange, a unit of account, and a store of value, widely accepted in the form of coins and banknotes for the payment of goods and services and repayment of debts.