What is Depletion?

Answer:

Depletion is the amortization of assets that can be physically reduced. It is the actual physical reduction of extractable natural resources For example, coal mines, oil fields and other natural resources are depleted on company accounting statements .

What is Amortization?

Answer:

Amortization is the writing off an intangible asset over the projected life of the assets. This method measures the consumption of the value of intangible assets, such as a patent or a copyright

What is Depreciation?

Answer:

Depreciation is an expense recorded to allocate a tangible asset's cost over its useful life It is a non-cash expense that reduces the value of an asset as a result of wear and tear, age, or obsolescence 

What is Intangible asset?

Answer:

An intangible asset has no physical substance but provide long-term benefits to the Organization. For example, patents, copyrights, trademarks, trade names, franchise licenses, government licenses, goodwill etc.

What are the Financial Statements of Banks?

Answer:

1.       Balance Sheet

2.      Income Statement

3.      Cash Flow Statement

4.      Statement change in owner’s equity

5.      Statement change in liquidity

What is Economic Event?

Answer:

Ø  An economic event means transaction.

Ø  In accounting, any event that can be measured in terms of money and changes in financial position of an organization.