5 Written questions
5 Matching questions
- Plant assets
- Depreciable cost
- Additions and improvements
- Ordinary repairs
- a The cost of a plant asset minus salvage value
- b The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
- c Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
- d Tangible resources that are used in the operations of the business and are not intended for sale to customers.
- e Expenditures to maintain the operating efficiency and productive life of a unit.
5 Multiple choice questions
- A measure of how efficienly a company uses its assets to generate sales; calculated as net sales divided by average total assets
- Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
- A contractual arrangement under which the franchisor grants the franshisee the right to sell certain products, provide specific services, or use certain trademarks or trade names, usually within a designated geographic area.
- The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
- Expenditures that increase a company's investment in productive facilities.
5 True/False questions
Units-of-activity method → Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
Licenses → An exclusive right issued by the U.S Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant.
Salvage value → An estimate of an asset's value at the end of its useful life
Patent → Operating rights to use public property, granted to a business enterprise by a governmental agency.
Revenue expenditures → Expenditures that are immedietely charged against revenues as an expense.