Financial Accounting

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Account For Natural Resources

FINACT-WR47YQ

Natural resources are accounted for differently from other tangible property, plant and equipment. What is the nature of the difference?

Natural resources, such as

, are often called

} because they are

. Natural resources are reported on the balance sheet at cost

. Depletion (or amortization) expense is the process of allocating the cost of natural resource in the period they are

.