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Match Each Definition with Its Term

Question 74

Matching

Match each definition with its term

Premises:
An expenditure to make a plant asset more efficient or productive
Expenditures made to keep a plant asset in normal, good operating condition
A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage
The amount by which the company's value exceeds the value of its individual assets and liabilities
The process of allocating the cost of natural resources to periods when they are consumed
A change in a financial statement amount that results from new information, subsequent developments, better insight or improved judgment
An expenditure reported on the current income statement as an expense because it does not provide a material benefit in future periods
Certain nonphysical assets used in operations that confer on their owners long-term rights, privileges or competitive advantages
A measure of a company's ability to use its assets to generate sales
A method that yields larger depreciation expense during the early years of an asset's life and smaller expense in the later years
Responses:
Goodwill
Revenue expenditure
Betterment
Accelerated depreciation
Ordinary repairs
Depletion
Total asset turnover
Change in accounting estimate
Units-of production method
Intangible assets

Correct Answer:

An expenditure to make a plant asset more efficient or productive
Expenditures made to keep a plant asset in normal, good operating condition
A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage
The amount by which the company's value exceeds the value of its individual assets and liabilities
The process of allocating the cost of natural resources to periods when they are consumed
A change in a financial statement amount that results from new information, subsequent developments, better insight or improved judgment
An expenditure reported on the current income statement as an expense because it does not provide a material benefit in future periods
Certain nonphysical assets used in operations that confer on their owners long-term rights, privileges or competitive advantages
A measure of a company's ability to use its assets to generate sales
A method that yields larger depreciation expense during the early years of an asset's life and smaller expense in the later years
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