Depletion is the movement of the cost of natural resources from a company's balance sheet to its income statements. The objective is to match on the income statement the cost of the natural resources that were sold with the revenuesof the natural resources that were sold. The cost of the natural resources sold is referred to as depletion expense.
After working as an accountant, consultant, and university accounting instructor for more
than 25 years, Harold Averkamp formed AccountingCoach in 2003. His goal was to
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