Question 1

Match the items below by entering the appropriate code letter in the space provided.
A. Gain on disposal 
B. Loss on disposal 
C. Trademark 
D. Depletion 
E. Useful life
F. Asset turnover
G. Goodwill
G. Goodwill
H. Amortization
I. Intangible asset
 J. Research and development costs
1. Process of allocating the cost of an intangible asset to expense over its useful life.
2. Is only recorded when an exchange has commercial substance.
3. Examples are franchises and licenses.
4. The allocation of the cost of a natural resource to expense over its useful life.
5. Can be identified only with a business as a whole.
6. A symbol that identifies a particular enterprise or product.
7. When book value of asset is greater than the proceeds received from its sale.
8. Must be expensed when incurred.
9. Indicates how efficiently a company is able to generate sales with its assets.
10. An estimate of the expected productive life of an asset.

Accepted Answer

The answer of Match the items below by entering the...

Question 2

The cost of a patent should be amortized over its ____________ life or its ____________ life, whichever is shorter.

Accepted Answer

The answer of The cost of a patent should be...

Question 3

Match the items below by entering the appropriate code letter in the space provided.
A. Plant assets 
B. Depreciation 
C. Book value 
D. Salvage value 
E. Straight-line method 
F. Units-of-activity method
G. Double-declining-balance method
H. MACRS
I. Revenue expenditure
J. Capital expenditure
1. Small expenditures which primarily benefit the current period.
2. Cost less accumulated depreciation.
3. An accelerated depreciation method used for financial statement purposes.
4. Tangible resources that are used in operations and are not intended for resale.
5. Equal amount of depreciation each period.
6. Expected cash value of the asset at the end of its useful life.
7. Allocation of the cost of a plant asset to expense over its useful life.
8. Material expenditures which increase an asset's operating efficiency, productive capacity, or useful life.
9. An accelerated depreciation method used for tax purposes.
10. Useful life is expressed in terms of units of production or expected use.

Accepted Answer

The answer of Match the items below by entering the...

Question 4

In recording the purchase of a business, goodwill should be recorded for the excess of ______________ over the _______________ of the net assets acquired.

Accepted Answer

The answer of In recording the purchase of a business,...

Question 5

The allocation of the cost of an asset to expense over its useful life is called _________________ for tangible plant assets, ________________ for natural resources, and _________________ for intangible assets.

Accepted Answer

The answer of The allocation of the cost of an...

Question 6

The ___________________ is calculated by dividing net sales by average total assets.

Accepted Answer

The answer of The ___________________ is calculated by dividing net...

Question 7

Natural resources have two distinguishing characteristics (1) they are physically _______________ in operations, and (2) they are _________________ only by an act of nature.

Accepted Answer

The answer of Natural resources have two distinguishing characteristics (1)...

Question 8

If the proceeds from the sale of a plant asset exceed its ______________, a gain on disposal will occur.

Accepted Answer

The answer of If the proceeds from the sale of...

Question 9

Match between columns
                        Premises: Process of allocating the cost of an intangible asset to expense over its useful life.
Is only recorded when an exchange has commercial substance.
Examples are franchises and licenses.
The allocation of the cost of a natural resource to expense over its useful life.
Can be identified only with a business as a whole.
A symbol that identifies a particular enterprise or product.
When book value of asset is greater than the proceeds received from its sale.
Must be expensed when incurred.
Indicates how efficiently a company is able to generate sales with its assets.
An estimate of the expected productive life of an asset.

Accepted Answer

The Answer of Gain on disposal and Loss on disposal is...

Question 10

Match between columns
                        Premises: Small expenditures which primarily benefit the current period.
Cost less accumulated depreciation.
An accelerated depreciation method used for financial statement purposes.
Tangible resources that are used in operations and are not intended for resale.
Equal amount of depreciation each period.
Expected cash value of the asset at the end of its useful life.
Allocation of the cost of a plant asset to expense over its useful life.
Material expenditures which increase an asset's operating efficiency, productive capacity, or useful life.
An accelerated depreciation method used for tax purposes.
Useful life is expressed in terms of units of production or expected use.

Accepted Answer

The Answer of Plant assets and Depreciation and Book value is...

Question 11

Match between columns
                        Premises: Goodwill
Land
Buildings
Patents
Copyrights
Research and development costs
Timberlands
Franchises (indefinite life)
Licenses (limited life)
Land Improvements
Oil Deposits
Equipment

Accepted Answer

The Answer of Amortization and Depreciation and Depletion and None is...

Quiz 9: Plant Assets, Natural Resources, and Intangible Assets

The cost of a patent should be amortized over its life or its life, whichever is shorter.

In recording the purchase of a business, goodwill should be recorded for the excess of over the _ of the net assets acquired.

The allocation of the cost of an asset to expense over its useful life is called _ for tangible plant assets, for natural resources, and _ for intangible assets.

The ___________________ is calculated by dividing net sales by average total assets.

Natural resources have two distinguishing characteristics (1) they are physically _ in operations, and (2) they are ___ only by an act of nature.

If the proceeds from the sale of a plant asset exceed its ______________, a gain on disposal will occur.

Match the items below

Match the items below

For each item listed below, indicate the allocation terminology for the item.