Asked by Andres Soler on Jun 21, 2024
Verified
Natural resources are:
A) Assets that are physically consumed when used such as standing timber,mineral deposits,and oil and gas fields.
B) Tangible assets used in the operations of the business.
C) Current liabilities because they are depleted.
D) Not subject to allocation to expense over their useful lives.
E) Depleted using a straight-line method.
Natural Resources
Substances like minerals, forests, water, and fertile land that are found in nature and can be utilized for economic benefits.
Physically Consumed
This term refers to the actual use and depletion of resources or materials in a production process.
- Become familiar with the financial documentation of natural resources and the evaluation of depletion.
Verified Answer
MM
muzakkir mohiuddinJun 26, 2024
Final Answer :
A
Explanation :
Natural resources are physical assets that can be depleted over time through use, such as timber, mineral deposits, and oil fields. They cannot be depreciated using a straight-line method like other fixed assets, and are typically subject to depletion accounting methods.
Learning Objectives
- Become familiar with the financial documentation of natural resources and the evaluation of depletion.