Properties whose physical substance consists of natural resources that are consumed in the operation of the business are called
A) depreciable assets.
B) wasting assets.
C) amortizable assets.
D) intangible assets.

Question

Quizplus · Accepted Answer

Wasting assets refer to natural resources that are used up and consumed in the operation of a business, such as oil, gas, minerals, and timber. These assets are not depreciable, as they do not lose value due to wear and tear, but rather through depletion. Amortizable assets refer to intangible assets that have a finite useful life, such as patents or copyrights. Depreciable assets are tangible assets that lose value over time due to wear and tear, such as vehicles or machinery. Intangible assets refer to non-physical assets, such as trademarks or goodwill.

Properties Whose Physical Substance Consists of Natural Resources That Are