Natural Resources

Definition

Assets that are physically consumed through extraction: oil, minerals, timber. Recorded at cost and depleted (expensed) over time.

Related Terms

Depletion

The process of allocating the cost of natural resources (oil, timber, minerals) over the periods they're extracted. It's depreciation for stuff you pull out of the ground.

Learn More About Accounting

Explore our free lessons and practice labs to master accounting concepts.

Browse Lessons View All Terms