5 Written questions
5 Matching questions
- Intangible asset
- a 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.
- b The value of all favorable attributes that relate to a business enterprise.
- c A word,phrase,jingle, or symbol that identifies a particular enterprise or product.
- d Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
- e Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
5 Multiple choice questions
- 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
- Tangible resources that are used in the operations of the business and are not intended for sale to customers.
- Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
- Expenditures to maintain the operating efficiency and productive life of a unit.
- 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
Revenue expenditures → Expenditures that are immedietely charged against revenues as an expense.
Capital expenditures → Expenditures that are immedietely charged against revenues as an expense.
Depreciable cost → The cost of a plant asset minus salvage value
Amortization → The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
Units-of-activity method → Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.