ACCT 332 Chapter 10 Reading Questions 1. What is the difference between liquidity and solvency? 2. Why Balance Sheet is useful but has limitations? 3. What are examples of long-lived and revenue generating assets? 4. How to determine the initial cost of property, plant, and equipment (PPE)? 5. How to determine the initial cost of individual property, plant, and equipment and intangible assets acquired as a group for a lump-sum purchase price? 6. How to determine the initial cost of natural resources? 7. What is Asset Retirement Obligations? How to calculate? 8. What are intangible assets? How to determine the initial cost of intangible assets? 9. How to determine the initial cost of property, plant, and equipment and intangible assets acquired in exchange for a deferred payment contract (e.g, notes payable)? 10. How to calculate the fixed-asset turnover ratio used by analysts to measure how effectively managers use property, plant, and equipment