What Is a Problem with Natural Gas

question 121

Multiple Choice

What is a problem with natural gas?

• A) It occurs in equal amounts everywhere in the globe (and is therefore too cheap to trade).
• B) It is expensive to transport by sea.
• C) Only a small amount is captured from wells, while much is wasted to leakage.
• D) It requires highly advanced technology to separate helium from what can be consumed.
• E) All reserves of it are in the Middle East.

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Definitions:

Subsequent Event

Events occurring after the balance sheet date but before the financial statements are issued or available to be issued, which may affect the readers' understanding.

Discounted Note

A promissory note whose proceeds at issuance are less than its face value, due to interest being deducted or discounted in advance.

Borrowing Funds

The act of obtaining money from external sources, like banks or investors, which must usually be repaid with interest.

Interest Expense

The cost incurred by an entity for borrowed funds, payable to lenders as a finance charge over the term of the loan.