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Match Each of the Appropriate Definitions with Terms

Question 21

Matching

Match each of the appropriate definitions with terms.

Premises:
An expenditure that makes a plant asset more efficient or productive.
Certain nonphysical assets used in operations that confer long-term rights, privileges, or competitive advantages on their owners.
A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage.
The process of allocating the cost of a natural resource to the period when it are consumed.
A method of depreciation that yields larger expense during the early years of an asset's life and smaller expense in the later years.
A measure of a company's effectiveness in using its assets to generate sales.
A cost reported as an expense on the current income statement because it does not provide a material benefit in future periods.
Expenditures to keep a plant asset in normal, good operating condition.
The process of systematically allocating the cost of an intangible asset to expense over its estimated useful life.
The amount by which the company's value exceeds the value of its individual assets and liabilities.
Responses:
Amortization
Revenue expenditure
Goodwill
Total asset turnover
Intangible assets
Accelerated depreciation
Ordinary repairs
Units-of production method
Betterment
Depletion

Correct Answer:

An expenditure that makes a plant asset more efficient or productive.
Certain nonphysical assets used in operations that confer long-term rights, privileges, or competitive advantages on their owners.
A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage.
The process of allocating the cost of a natural resource to the period when it are consumed.
A method of depreciation that yields larger expense during the early years of an asset's life and smaller expense in the later years.
A measure of a company's effectiveness in using its assets to generate sales.
A cost reported as an expense on the current income statement because it does not provide a material benefit in future periods.
Expenditures to keep a plant asset in normal, good operating condition.
The process of systematically allocating the cost of an intangible asset to expense over its estimated useful life.
The amount by which the company's value exceeds the value of its individual assets and liabilities.
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