5 Written questions
5 Matching questions
- Units-of-activity method
- Useful life
- Natural Resources
- Straight-line method
- a An estimate of the expected productive life, also called service life, of an asset
- 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 Assets that consist of standing timber and underground deposits of oil,gas, or minerals
- d Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
- e Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
5 Multiple choice questions
- The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
- 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.
- If an item would not make a difference in decision making, a company does not have to follow GAAP in reporting it.
- The cost of a plant asset minus salvage value
- Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
5 True/False questions
Going-concern assumption → States that the company will continue in operation for the forseeable future
Revenue expenditures → Expenditures that are immedietely charged against revenues as an expense.
Additions and improvements → Expenditures to maintain the operating efficiency and productive life of a unit.
Ordinary repairs → Expenditures to maintain the operating efficiency and productive life of a unit.
R and D Costs → Tangible resources that are used in the operations of the business and are not intended for sale to customers.