Solved

Match Each Definition with the Appropriate Term

Question 136

Matching

Match each definition with the appropriate term

Premises:
The allocation of costs as they relate to copyrights, patents, and trademarks.
Based on the decline in the asset’s service potential each period.
Calculated based upon a formula rather than an arbitrary manner.
Can be measured in units, hours, or time.
A constant rate applied to the book value of the asset.
Based upon the amount of use versus time periods.
The allocation of costs related to natural resources.
The difference between the original cost of the asset and an estimate of its residual value.
Uses two times the straight-line depreciation rate applied to the book value of the asset at the beginning of each period.
The amount of time the company expects the asset to be viable.
Computed as: Asset Cost - Estimated Residual Value
The expected book value at the end of the depreciation period.
Responses:
depletion
useful life
depreciation base
double-declining-balance method
rational method of cost allocation
salvage value
depreciable cost
amortization
activity method
declining-balance method
systematic method of cost allocation
service life

Correct Answer:

The allocation of costs as they relate to copyrights, patents, and trademarks.
Based on the decline in the asset’s service potential each period.
Calculated based upon a formula rather than an arbitrary manner.
Can be measured in units, hours, or time.
A constant rate applied to the book value of the asset.
Based upon the amount of use versus time periods.
The allocation of costs related to natural resources.
The difference between the original cost of the asset and an estimate of its residual value.
Uses two times the straight-line depreciation rate applied to the book value of the asset at the beginning of each period.
The amount of time the company expects the asset to be viable.
Computed as: Asset Cost - Estimated Residual Value
The expected book value at the end of the depreciation period.
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