5 Written Questions
5 Matching Questions
- Going-concern assumption
- Intangible asset
- Ordinary repairs
- Useful life
- Capital expenditures
- a Expenditures that increase a company's investment in productive facilities.
- b Expenditures to maintain the operating efficiency and productive life of a unit.
- c States that the company will continue in operation for the forseeable future
- d Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
- e An estimate of the expected productive life, also called service life, of an asset
5 Multiple Choice Questions
- Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
- The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
- 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.
- Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset
- If an item would not make a difference in decision making, a company does not have to follow GAAP in reporting it.
5 True/False Questions
Goodwill → Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
Salvage value → A word,phrase,jingle, or symbol that identifies a particular enterprise or product.
Additions and improvements → Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
Accelerated-depreciation method → Depreciation method that produces higher depreciation expense in the early years rather than in the later years
Depreciable cost → The cost of a plant asset minus salvage value