31-40

Question 1

Depletion

Answer 1

Used to spread out the cost of a natural resource (Gas/Coal)

Question 2

The land account is located in the _____ section of the balance sheet.

Answer 2

Fixed Assets

Question 3

Short-Term (Current Liabilities)

Answer 3

Debts the company expects to pay within a year

Question 4

Long-Term Liabilities

Answer 4

Debts the company expects to pay in more than a year

Question 5

Accounts Payable

Answer 5

The amount owed to suppliers for the purchase of goods/services

Question 6

Accrued Expenses

Answer 6

Expenses that have been incurred but not yet paid for

Question 7

Notes Payable

Answer 7

Amounts owed to other parties that loaned money to the company

Question 8

Stockholders’ Equity

Answer 8

The shareholders’ claims to the company’s net assets

Question 9

Industry Analysis

Answer 9

Comparing two or more businesses at the same point in time

Question 10

Main Purposes of Cash Flow Statement

Answer 10

1) Shows how the company cash account changed from an initial to final amount
2) Estimates the company’s actual cash flow