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5 Written questions

5 Matching questions

  1. Depletion
  2. Plant assets
  3. Depreciable cost
  4. Additions and improvements
  5. Ordinary repairs
  1. a The cost of a plant asset minus salvage value
  2. b The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
  3. c Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
  4. d Tangible resources that are used in the operations of the business and are not intended for sale to customers.
  5. e Expenditures to maintain the operating efficiency and productive life of a unit.

5 Multiple choice questions

  1. A measure of how efficienly a company uses its assets to generate sales; calculated as net sales divided by average total assets
  2. Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
  3. 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.
  4. The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
  5. Expenditures that increase a company's investment in productive facilities.

5 True/False questions

  1. Units-of-activity methodDepreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset


  2. LicensesAn 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.


  3. Salvage valueAn estimate of an asset's value at the end of its useful life


  4. PatentOperating rights to use public property, granted to a business enterprise by a governmental agency.


  5. Revenue expendituresExpenditures that are immedietely charged against revenues as an expense.


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