Natural resources are classified as long-term assets on the balance sheet.

Question

Quizplus · Accepted Answer

Natural resources are typically considered long-term assets because they are not intended for immediate sale or consumption and have a limited useful life. Examples of natural resources include oil reserves, timberland, and minerals. As such, they are typically included in the property, plant, and equipment section of the balance sheet and depreciated over their estimated useful life.

Natural Resources Are Classified as Long-Term Assets on the Balance