Final answer:
Depletion is the process of expensing the cost of timber on land owned. It allows for the allocation of expenses related to harvested timber over time, and is recorded as the using up of the timber resource.
Step-by-step explanation:
The process of expensing the cost of timber on land owned is called depletion. This accounting method is similar to depreciation and is used to allocate the expense of natural resources over time. When timber is harvested and sold, the value of the timber is deducted from the asset's value on the balance sheet and reported as an expense on the income statement. This depletion expense reflects the using up of the timber resource.
In tropical areas, the clearing of forest land, often referred to as deforestation, is driven by the need for hardwood lumber as a source of income or to make space for agricultural activities such as cattle ranching. This has become more prevalent as countries with fewer economic opportunities exploit their natural resources for subsistence or economic gain, contributing to a global increase in deforestation.