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Match Each of the Following Terms with the Appropriate Definitions

Question 48

Matching

Match each of the following terms with the appropriate definitions.

Premises:

Responses:

Units-of production method

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

Ordinary repairs

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

Depletion

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

Accelerated depreciation

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

Revenue expenditure

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

Goodwill

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

Change in accounting estimate

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

Total asset turnover

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

Betterment

An expenditure to make a plant asset more efficient or productive

Intangible assets

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