5 Written questions
5 Matching questions
- Salvage value
- Straight-line method
- Units-of-activity method
- Depreciable cost
- Accelerated-depreciation method
- a Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
- b Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
- c An estimate of an asset's value at the end of its useful life
- d The cost of a plant asset minus salvage value
- e Depreciation method that produces higher depreciation expense in the early years rather than in the later years
5 Multiple choice questions
- An estimate of the expected productive life, also called service life, of an asset
- Expenditures that may lead to patents, copyrights, new processes, or a new products.
- A measure of how efficienly a company uses its assets to generate sales; calculated as net sales divided by average total assets
- Expenditures that are immedietely charged against revenues as an expense.
- Tangible resources that are used in the operations of the business and are not intended for sale to customers.
5 True/False questions
Additions and improvements → Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
Declining-balance method → 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
Copyright → Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
Depletion → The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
Goodwill → Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work