Natural resources:
A) are not physically used up over time.
B) have a contra account, accumulated amortization.
C) are recorded on the books using the relative sales-value method.
D) are depleted using the unit-of-production method.

Question

Quizplus · Accepted Answer

Natural resources are typically depleted over time through extraction or usage, and the unit-of-production method is commonly used to allocate the cost of the natural resource to the units extracted or used. Choices A and B are not accurate, as natural resources can indeed be physically used up over time and do not have a contra account of accumulated amortization. Choice C is also not accurate, as the sales-value method is not commonly used for natural resources.

Natural Resources