Question

Depletion in accounting meaning very easy wording

Answer 1

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Depletion is an accounting and tax concept used most often in mining, timber, petroleum, or other similar industries.

Depletion is similar to depreciation in that it is a cost recovery system for accounting and tax reporting. "The depletion deduction" allows an owner or operator to account for the reduction of a product's reserves.

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Answer 2

Answer:

Explanation:

An accounting method used by mining, oil, or other natural resource companies to write off natural resource assets such as oil, gas, precious metals, or minerals as they are withdrawn from the ground. Depletion functions much like depreciating a building or equipment to reflect the fact that its value decreases over time. Depletion is a non-cash expense that is deducted from revenues; it increases expenses and thus lowers net income.