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Asset recognition criteria are needed in order to determine which assets will be included in the balance sheet. When an expenditure is made, it can either be recognized as an expense or an asset, with recognition as an expense being the default presumption.
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Depletion, for both accounting purposes and United States tax purposes, is a method of recording the gradual expense or use of natural resources over time. Depletion is the using up of natural resources by mining, quarrying, drilling, or felling .
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