The process of allocating the cost of a natural resource to a period when it is consumed requires a debit entry to the "Expense" account.

Here are the steps:

1. Identify the natural resource that has been consumed during the period. This could be anything from timber to oil to minerals.

2. Determine the cost of the resource that has been consumed. This could involve calculating the cost of extraction or purchase, or it could be based on the market value of the resource.

3. Make a debit entry in the Expense account for the cost of the resource. This will increase the Expense account, reflecting the fact that the company has incurred costs in consuming the resource.

4. There should also be a corresponding credit entry in the asset account that represents the natural resource. This will decrease the asset account, reflecting the fact that the company has used up some of its resources.

5. The debit to the Expense account and the credit to the asset account should be made at the end of the period in which the resource was consumed. This ensures that the company's financial statements accurately reflect its costs and resources for that period.

Question

The process of allocating the cost of a natural resource to a period when it is consumed requires a debit entry to the "Expense" account.

Here are the steps:

1. Identify the natural resource that has been consumed during the period. This could be anything from timber to oil to minerals.

2. Determine the cost of the resource that has been consumed. This could involve calculating the cost of extraction or purchase, or it could be based on the market value of the resource.

3. Make a debit entry in the Expense account for the cost of the resource. This will increase the Expense account, reflecting the fact that the company has incurred costs in consuming the resource.

4. There should also be a corresponding credit entry in the asset account that represents the natural resource. This will decrease the asset account, reflecting the fact that the company has used up some of its resources.

5. The debit to the Expense account and the credit to the asset account should be made at the end of the period in which the resource was consumed. This ensures that the company's financial statements accurately reflect its costs and resources for that period.

Knowee AI · Accepted Answer

The process of allocating the cost of a natural resource to a period when it is consumed requires a debit entry to the "Expense" account.

Here are the steps:

1. Identify the natural resource that has been consumed during the period. This could be anything from timber to oil to minerals.

2. Determine the cost of the resource that has been consumed. This could involve calculating the cost of extraction or purchase, or it could be based on the market value of the resource.

3. Make a debit entry in the Expense account for the cost of the resource. This will increase the Expense account, reflecting the fact that the company has incurred costs in consuming the resource.

4. There should also be a corresponding credit entry in the asset account that represents the natural resource. This will decrease the asset account, reflecting the fact that the company has used up some of its resources.

5. The debit to the Expense account and the credit to the asset account should be made at the end of the period in which the resource was consumed. This ensures that the company's financial statements accurately reflect its costs and resources for that period.

The process of allocating the cost of a natural resource to a period when it is consumed requires a debit entry to the account.

Question

The process of allocating the cost of a natural resource to a period when it is consumed requires a debit entry to the account.

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