5 Written questions
5 Matching questions
- Straight-line method
- Depreciable cost
- Revenue expenditures
- a Operating rights to use public property, granted to a business enterprise by a governmental agency.
- b A contractual arrangement under which the franchisor grants the franshisee the right to sell certain products, provide specific services, or use certain trademarks or trade names, usually within a designated geographic area.
- c The cost of a plant asset minus salvage value
- d Expenditures that are immedietely charged against revenues as an expense.
- e Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
5 Multiple choice questions
- Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
- Expenditures that may lead to patents, copyrights, new processes, or a new products.
- Depreciation method that produces higher depreciation expense in the early years rather than in the later years
- 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.
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.
Useful life → The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
Ordinary repairs → Expenditures to maintain the operating efficiency and productive life of a unit.
Materiality Priciple → If an item would not make a difference in decision making, a company does not have to follow GAAP in reporting it.