5 Written Questions
5 Matching Questions
- Depreciable cost
- Capital expenditures
- Straight-line method
- a The value of all favorable attributes that relate to a business enterprise.
- b The cost of a plant asset minus salvage value
- c The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
- d Expenditures that increase a company's investment in productive facilities.
- e Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
5 Multiple Choice Questions
- A word,phrase,jingle, or symbol that identifies a particular enterprise or product.
- Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
- An estimate of an asset's value at the end of its useful life
- Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
- Expenditures that are immedietely charged against revenues as an expense.
5 True/False Questions
Materiality Priciple → If an item would not make a difference in decision making, a company does not have to follow GAAP in reporting it.
Patent → Operating rights to use public property, granted to a business enterprise by a governmental agency.
Declining-balance method → Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
Amortization → The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
Asset turnover ratio → A measure of how efficienly a company uses its assets to generate sales; calculated as net sales divided by average total assets