5 Written Questions
5 Matching Questions
- Declining-balance method
- Depreciable cost
- Capital expenditures
- Asset turnover ratio
- Ordinary repairs
- a Expenditures that increase a company's investment in productive facilities.
- b 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
- c Expenditures to maintain the operating efficiency and productive life of a unit.
- d A measure of how efficienly a company uses its assets to generate sales; calculated as net sales divided by average total assets
- e The cost of a plant asset minus salvage value
5 Multiple Choice Questions
- The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
- Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
- Depreciation method that produces higher depreciation expense in the early years rather than in the later years
- Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
- Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
5 True/False Questions
Licenses → Operating rights to use public property, granted to a business enterprise by a governmental agency.
Amortization → The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
R and D Costs → Expenditures that may lead to patents, copyrights, new processes, or a new products.
Copyright → Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
Useful life → An estimate of the expected productive life, also called service life, of an asset