5 Written questions
5 Matching questions
- Revenue expenditures
- Straight-line method
- Salvage value
- a Expenditures that are immedietely charged against revenues as an expense.
- b The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
- c The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
- d Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
- e An estimate of an asset's value at the end of its useful life
5 Multiple choice questions
- 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.
- Expenditures that increase a company's investment in productive facilities.
- Expenditures that may lead to patents, copyrights, new processes, or a new products.
- Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
- Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
5 True/False questions
Intangible asset → Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
Useful life → The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
Units-of-activity method → Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
Depreciable cost → The cost of a plant asset minus salvage value
Going-concern assumption → States that the company will continue in operation for the forseeable future