Amortization is spreading payments over a period of time, you are gradually writing off the initial cost of
an asset. Depletion is locating the cost of a natural resource, it is used often with timber, mining and
other industries that need to account the for reduction of a product’s reserves. While depreciation is the
reduction in price over a period of time due to its wear and tear/life.
What amortization, depletion, and depreciation have in common is that they are all non-cash expenses
that lower the cost value of an asset in charges in the income.