Q.What are wasting assets ?

Wasting assets are natural-resource assets like mines and oil wells whose value is used up as the resource is extracted.

Wasting assets are those fixed assets that get exhausted or depleted gradually in the process of extracting or using the natural resources they contain. Their utility and value reduce as the resource is taken out, and once fully extracted they lose their worth.

Examples include mines, quarries, oil wells, forests and other natural deposits. The gradual reduction in the value of such assets due to extraction is known as depletion (the counterpart of depreciation for these assets).

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