The net income of companies that explore for natural resources can sometimes bear little relation to the asset amounts reported on the balance sheet for natural resources a Explain how the lack of a relation between income and natural resource assets can occur b Describe circumstances when a more e...

a Generally accepted accounting principles require that natural resources wasting as ...

The net income of companies that explore for natural resources can sometimes bear little relation to the

Question:

The net income of companies that explore for natural resources can sometimes bear little relation to the asset amounts reported on the for natural resources.
a. Explain how the lack of a relation between income and natural resource assets can occur.
b. Describe circumstances when a more economically sensible relation is likely to exist.

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...