Depletion is a decreases in market value of natural resources. the amount of spoilage that occurs when natural resources are extracted. the application of the cost of natural resources to expense. the method used to record unsuccessful patents. The method most commonly used to compute depletion is the straight-line method. double-declining-balance method. units-of-activity method. effective interest method. Cost allocation of an intangible asset is referred to as amortization. depletion. accretion. capitalization. Intangible assets are the rights and privileges that results from ownership of long-lived assets that must be generated internally. are depletable natural resources. have been exchanged at a gain. Do not have physical substance. A current liability it a debt that can reasonably be expected to be paid within one year or the operating cycle, whichever is longer. between 6 months and 18 months. out of currently recognized revenues. out of cash currently on hand. Liabilities are classified on the balance sheet as current or deferred. unearned. long-term. accrued. Sales taxes collected by the retailer are recorded as a(n) revenue. liability. expense. asset