5 Written questions
5 Matching questions
- Useful life
- Plant assets
- Revenue expenditures
- Going-concern assumption
- a Expenditures that are immedietely charged against revenues as an expense.
- b Tangible resources that are used in the operations of the business and are not intended for sale to customers.
- c An estimate of the expected productive life, also called service life, of an asset
- d States that the company will continue in operation for the forseeable future
- e The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
5 Multiple choice questions
- Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
- Expenditures that may lead to patents, copyrights, new processes, or a new products.
- If an item would not make a difference in decision making, a company does not have to follow GAAP in reporting it.
- An estimate of an asset's value at the end of its useful life
- 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.
5 True/False questions
Goodwill → Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
Additions and improvements → Expenditures to maintain the operating efficiency and productive life of a unit.
Depreciable cost → Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
Amortization → The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
Natural Resources → Expenditures to maintain the operating efficiency and productive life of a unit.