Derivative Instruments Are

question 74

Multiple Choice

Derivative instruments are

• A)assets such as bonds or common stock that derive their value from the value of the companies which issue them.
• B)assets whose rates of returns must be derived from information published in financial tables.
• C)assets which derive their value from underlying assets.
• D)computers which display real-time financial information.

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Definitions:

Mining Rights

Legal permissions granted to companies or individuals to extract minerals or other valuable materials from the earth.

Depletion Expense

An accounting concept used to allocate the cost associated with natural resource extraction over the period of their removal or sale.

Accumulated Depletion

The total value of natural resource extraction from a property, representing the reduction of the asset's value on the balance sheet over time.

Ore

A naturally occurring solid material from which a metal or valuable mineral can be extracted profitably.