Definition Depletion. Description.
Depletion is an accounting treatment to deal with the
reduction in the value of natural, non-renewable resources due to gradually
"using up" the natural resource. Example of such natural resources include
oil, gas, coal, gold, other minerals and timber.
The recording of depletion is a bookkeeping entry similar
to depreciation and does not involve
the expenditure of cash. As a non-cash expense it is deducted from revenues
and thus lowers net income.
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Compare with: Depreciation
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Factor Endowments
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