Notes Payable Are Either Spontaneous Secured or Spontaneous Unsecured Financing

question 68

True/False

Notes payable are either spontaneous secured or spontaneous unsecured financing and result from the normal operations of a firm.

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Definitions:

Depletion Expense

A charge against profits representing the reduction in value of a natural resource as it is extracted or consumed.

Mining Property

Land or rights to land that are held for the purpose of extracting minerals, oil, or gas.

Ore

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

Straight-Line Depreciation

A procedure for spreading out the cost of a solid asset over the duration of its usability in equal annual payments.