Question

what is depletion??


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Answer 1

Answer:

Depletion refers to an accrual accounting method used to determine the expense of extracting natural resources from the earth, such as wood, minerals, and oil. Just like depreciation and amortisation, depletion is a non-cash expense. It incrementally lowers an asset's cost value through scheduled income charges.

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Answer 2

Answer:

Depletion is the exhaustion of natural resources as a result of their removal. Examples are oil, minerals and timber. Depletion reduces a company's taxable income.

Explanation:

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