This essay focuses on extraction from the natural setting. Natural resources are also call wasting assets because they are use up when they are consume.
(the bonds) and stockholders’ equity. We will return later to further analysis of the composition. It is of both the current and the noncurrent accounts .Natural resources are the assets that occur naturally, and they are derive. This is from the earth. Examples of natural resources include timber, fossil fuels, oil fields, and minerals. Natural resources are also call wasting assets because they are use up when they are consume. The assets must be consume through extraction from the natural setting.
Tangible assets refer to assets with a physical form or property that are own by a company and are central to its core operations. The record value of a tangible asset is its original acquisition cost less any accumulate depreciation.
However, not all physical assets are depreciate. Assets, such as land, are hold at cost even though they tend to appreciate in value. Depreciation is a non-cash notation that reduces the value of an asset over time.
Intangible are assets that lack a physical form but offer economic value to the company. Examples of such assets include goodwill and intellectual property, such as trademarks, patents, and copyrights
The base, or benchmark, on which all other items in the income statement are compare is net sales. Again, observations from the comparative statements alone are further confirmed by examining the common-size statements. Although the gross profit ratio—gross profit as a percentage of net sales—was 30.0% in 2016, the same ratio for 2017 is only 25.0% . Recall the earlier observation that although sales increased by 20% from one year to the next, cost of goods sold increased by 29%.