Solved

Match Each of the Following Terms with the Appropriate Definitions

Question 43

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Change in accounting estimate

An expenditure reported on the current income statement as an expense because it does not provide a material benefit in future periods.

Depletion

A method that yields larger depreciation expense during the early years of an asset's life and smaller expense in the later years

Betterment

A change in a financial statement amount that results from new information, subsequent developments, better insight, or improved judgment.

Units-of production method

The amount by which the company's value exceeds the value of its individual assets and liabilities.

Accelerated depreciation

The process of allocating the cost of natural resources to periods when they are consumed.

Revenue expenditure

Expenditures made to keep a plant asset in normal, good operating condition .

ntangible assets

An expenditure to make a plant asset more efficient or productive.

Ordinary repairs

Certain nonphysical assets used in operations that confer on their owners long-term rights, privileges, or competitive advantages.

Asset turnover

A measure of a company's ability to use its assets to generate sales.

Goodwill

A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage.