Final answer:
In the context of a balance sheet, 'natural resources' typically refers to undeveloped resources such as minerals or oil, differing from developed properties like timberlands. These resources are long-term assets, crucial in the production of various goods and services.
Step-by-step explanation:
On a balance sheet, natural resources may be described as a variety of assets with tangible value. Natural resources, in the context of a balance sheet, specifically exclude items such as timberlands. While timberlands are indeed a type of natural resource, on a balance sheet, the term 'natural resources' generally refers to undeveloped resources such as minerals, oil reserves, or gas deposits. These are distinct from developed natural resource properties like timberlands, which include the value of both the land and the trees grown on it—not just the trees themselves as an undeveloped resource.
In the realm of accounting, natural resources are considered long-term assets that are subject to depletion as they are utilized. They are often referred to more specifically as land (natural resources), raw materials, or non-timber forest products (NTFPs) when excluding timberlands. Raw materials, including non-timber items like minerals and oil, are fundamental components used in the production of goods and services. Their value, much like timberlands, rises from both their ability to be harvested and converted into products and from the services they provide, such as the enjoyment of natural beauty or ecosystem services.