Depletion

Definition: 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.

Learn more about depletion

More on accounting and auditing: Accounting Cycle, Accounts Payable, Accounts Receivable, Accrued Revenue, Amortization, more...

MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.