A Contract for the Sale of Minerals Is Considered to Be

question 29

True/False

A contract for the sale of minerals is considered to be a contract for the sale of goods if the severance is to be made by the seller.

---

Definitions:

Target Payout Ratio

Percentage of net income paid as a cash dividend.

Constant Ratio

A financial strategy or policy that maintains a fixed proportionate relationship between two or more variables, such as assets and liabilities.

Pro Forma Financial Statements

Financial statements projecting future years' earnings, usually to assess the impact of new projects or acquisitions.

Capital Intensity Ratio

A financial metric that measures the amount of assets needed per dollar of sales; higher ratios indicate a greater investment in assets to generate sales.