Matching
Match the term and the explanation.Not all explanations will be used.
Premises:
Declining-balance method
Long-lived assets
Net sales revenue
Asset impairment loss
Average net fixed assets
Carrying value
Capitalization of cost
Units-of-production method
Depreciation
Responses:
Also known as book value.
The denominator of the fixed asset turnover ratio.
Assets that will be used for more than three years.
A depreciation method that produces higher amounts of depreciation expense in the early years of an asset's life and lower amounts in the later years.
Also known as the average total cost of production.
When a company writes down the value of an asset when estimated future cash flows fall below the original level estimated.
When a company writes down the value of an asset because estimated future cash flows fall below the book value.
The process of transferring the cost of long-lived tangible assets to expenses.
How expenses are reported in the income statement.
The cost of financing an asset.
Also known as the initial value or balance forward value.
The average proportion of a company's total assets that is long-lived.
When costs are recorded as assets rather than expenses.
The numerator of the fixed asset turnover ratio.
A depreciation method that spreads asset cost by production rather than time.
Assets that will be used for more than a year.
Correct Answer:
Premises:
Responses:
Also known as book value.
The denominator of the fixed asset turnover ratio.
Assets that will be used for more than three years.
A depreciation method that produces higher amounts of depreciation expense in the early years of an asset's life and lower amounts in the later years.
Also known as the average total cost of production.
When a company writes down the value of an asset when estimated future cash flows fall below the original level estimated.
When a company writes down the value of an asset because estimated future cash flows fall below the book value.
The process of transferring the cost of long-lived tangible assets to expenses.
How expenses are reported in the income statement.
The cost of financing an asset.
Also known as the initial value or balance forward value.
The average proportion of a company's total assets that is long-lived.
When costs are recorded as assets rather than expenses.
The numerator of the fixed asset turnover ratio.
A depreciation method that spreads asset cost by production rather than time.
Assets that will be used for more than a year.
Premises:
Also known as book value.
The denominator of the fixed asset turnover ratio.
Assets that will be used for more than three years.
A depreciation method that produces higher amounts of depreciation expense in the early years of an asset's life and lower amounts in the later years.
Also known as the average total cost of production.
When a company writes down the value of an asset when estimated future cash flows fall below the original level estimated.
When a company writes down the value of an asset because estimated future cash flows fall below the book value.
The process of transferring the cost of long-lived tangible assets to expenses.
How expenses are reported in the income statement.
The cost of financing an asset.
Also known as the initial value or balance forward value.
The average proportion of a company's total assets that is long-lived.
When costs are recorded as assets rather than expenses.
The numerator of the fixed asset turnover ratio.
A depreciation method that spreads asset cost by production rather than time.
Assets that will be used for more than a year.
Responses:
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