A category of long-lived assets that are depleted over time is ______.Multiple choice question.machinerydelivery equipmentnatural resourcescashinventory

Break Down the Problem

1. Identify the category of long-lived assets mentioned in the question.
2. Understand the concept of depletion and how it applies to different asset types.

Relevant Concepts

1. Long-Lived Assets: These are assets that provide utility for more than one accounting period.
2. Depletion: This is a method used to allocate the cost of a natural resource over its useful life, different from depreciation (which is used for tangible assets like machinery).

Analysis and Detail

1. Machinery: These are tangible fixed assets typically depreciated, not depleted.
2. Delivery Equipment: Similar to machinery, delivery equipment is depreciation-dependent.
3. Natural Resources: These include assets like minerals, oil, and forests that are depleted over time as they are consumed.
4. Cash and Inventory: Cash is not a long-lived asset, and inventory is typically accounted for using different methods like FIFO or LIFO.

Verify and Summarize

After analyzing the options, "natural resources" is the only category that is specifically associated with depletion.

Final Answer

Natural resources.