Question 1

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Additions
A)Considered if indicated that book value may not be recoverable.
B)Estimate of recoverable cost at end of an asset's life.
C)Should be capitalized since they provide future benefits.
D)Capitalize unless unsuccessful.
E)Should be expensed unless they are material and provide a future benefit.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 2

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Change in useful life
A)Allocation of cost for plant and equipment.
B)Is a change in accounting estimate.
C)Results from subsequent year correction of a material error.
D)Expenditures made to maintain a given level of benefits from an asset.
E)Generate declining amounts of depreciation over time.

Accepted Answer

A change in the useful life of an asset is considered a change in accounting estimate, which reflects new information or developments and does not result from correcting errors.

Question 3

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-Double-declining balance
A)Cost allocation for an intangible asset.
B)Adding a new major component to existing plant and equipment.
C)Can be expressed in units of time or in units of activity.
D)Cost allocation for natural resources.
E)The amount the company expects to receive for the asset at the end of its life.
F)The replacement of a major component of plant and equipment asset.
G)Allocates an equal amount of depreciable base to each period.
H)Estimates service life in terms of a measure of activity.
I)The difference between cost and residual value.
J)Multiplies book value by twice the straight-line rate.

Accepted Answer

The double-declining balance method of depreciation multiplies the book value of an asset at the beginning of each year by a fixed rate, which is twice the rate of the straight-line method, making it an accelerated depreciation method.

Question 4

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Time-based method
A)Cost allocation for plant and equipment.
B)Results in depreciation declining by the same amount in subsequent years.
C)The reason for not amortizing goodwill.
D)Estimates service life in years.
E)Aggregates assets that are similar.

Accepted Answer

Time-based methods of depreciation, such as the straight-line method, estimate the service life of an asset in years and allocate its cost accordingly over its useful life.

Question 5

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-Amortization
A)Cost allocation for an intangible asset.
B)Adding a new major component to existing plant and equipment.
C)Can be expressed in units of time or in units of activity.
D)Cost allocation for natural resources.
E)The amount the company expects to receive for the asset at the end of its life.
F)The replacement of a major component of plant and equipment asset.
G)Allocates an equal amount of depreciable base to each period.
H)Estimates service life in terms of a measure of activity.
I)The difference between cost and residual value.
J)Multiplies book value by twice the straight-line rate.

Accepted Answer

Amortization is the process of spreading out a loan into a series of fixed payments over time, but in accounting, it also refers to the practice of expensing the cost of an intangible asset over its useful life. This is why it is associated with recovering the investment in intangible assets.

Question 6

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Residual value
A)Considered if indicated that book value may not be recoverable.
B)Estimate of recoverable cost at end of an asset's life.
C)Should be capitalized since they provide future benefits.
D)Capitalize unless unsuccessful.
E)Should be expensed unless they are material and provide a future benefit.

Accepted Answer

Residual value is the estimated amount that an entity can obtain for an asset at the end of its useful life, after deducting the expected costs of disposal.

Question 7

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Sum-of-the-years'-digits method
A)Cost allocation for plant and equipment.
B)Results in depreciation declining by the same amount in subsequent years.
C)The reason for not amortizing goodwill.
D)Estimates service life in years.
E)Aggregates assets that are similar.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 8

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-Service life
A)Cost allocation for an intangible asset.
B)Adding a new major component to existing plant and equipment.
C)Can be expressed in units of time or in units of activity.
D)Cost allocation for natural resources.
E)The amount the company expects to receive for the asset at the end of its life.
F)The replacement of a major component of plant and equipment asset.
G)Allocates an equal amount of depreciable base to each period.
H)Estimates service life in terms of a measure of activity.
I)The difference between cost and residual value.
J)Multiplies book value by twice the straight-line rate.

Accepted Answer

The answer of Listed below are 10 terms followed by...

Question 9

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Impairment
A)Considered if indicated that book value may not be recoverable.
B)Estimate of recoverable cost at end of an asset's life.
C)Should be capitalized since they provide future benefits.
D)Capitalize unless unsuccessful.
E)Should be expensed unless they are material and provide a future benefit.

Accepted Answer

Impairment is considered when there's an indication that the carrying amount (book value) of an asset may not be recoverable, meaning the asset's market value has decreased significantly.

Question 10

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Prior period adjustment
A)Allocation of cost for plant and equipment.
B)Is a change in accounting estimate.
C)Results from subsequent year correction of a material error.
D)Expenditures made to maintain a given level of benefits from an asset.
E)Generate declining amounts of depreciation over time.

Accepted Answer

Prior period adjustments are corrections of material errors in the financial statements of prior periods. They are not regular occurrences like depreciation (which can generate declining amounts of depreciation over time) or routine maintenance expenditures. They are distinct from changes in accounting estimates, which do not correct past errors but rather adjust estimates for the future.

Question 11

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-Activity-based method
A)Cost allocation for an intangible asset.
B)Adding a new major component to existing plant and equipment.
C)Can be expressed in units of time or in units of activity.
D)Cost allocation for natural resources.
E)The amount the company expects to receive for the asset at the end of its life.
F)The replacement of a major component of plant and equipment asset.
G)Allocates an equal amount of depreciable base to each period.
H)Estimates service life in terms of a measure of activity.
I)The difference between cost and residual value.
J)Multiplies book value by twice the straight-line rate.

Accepted Answer

Activity-based methods estimate service life in terms of a measure of activity, which aligns with choice H.

Question 12

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Indefinite life
A)Cost allocation for plant and equipment.
B)Results in depreciation declining by the same amount in subsequent years.
C)The reason for not amortizing goodwill.
D)Estimates service life in years.
E)Aggregates assets that are similar.

Accepted Answer

Goodwill is not amortized because it is considered to have an indefinite life, meaning its value does not predictably decline over time in the way tangible assets do.

Question 13

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Cost of defending intangible rights
A)Considered if indicated that book value may not be recoverable.
B)Estimate of recoverable cost at end of an asset's life.
C)Should be capitalized since they provide future benefits.
D)Capitalize unless unsuccessful.
E)Should be expensed unless they are material and provide a future benefit.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 14

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-Improvements
A)Cost allocation for an intangible asset.
B)Adding a new major component to existing plant and equipment.
C)Can be expressed in units of time or in units of activity.
D)Cost allocation for natural resources.
E)The amount the company expects to receive for the asset at the end of its life.
F)The replacement of a major component of plant and equipment asset.
G)Allocates an equal amount of depreciable base to each period.
H)Estimates service life in terms of a measure of activity.
I)The difference between cost and residual value.
J)Multiplies book value by twice the straight-line rate.

Accepted Answer

The answer of Listed below are 10 terms followed by...

Question 15

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Rearrangements
A)Considered if indicated that book value may not be recoverable.
B)Estimate of recoverable cost at end of an asset's life.
C)Should be capitalized since they provide future benefits.
D)Capitalize unless unsuccessful.
E)Should be expensed unless they are material and provide a future benefit.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 16

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Repairs and maintenance
A)Allocation of cost for plant and equipment.
B)Is a change in accounting estimate.
C)Results from subsequent year correction of a material error.
D)Expenditures made to maintain a given level of benefits from an asset.
E)Generate declining amounts of depreciation over time.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 17

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term.
-Straight-line method
A)Cost allocation for an intangible asset.
B)Adding a new major component to existing plant and equipment.
C)Can be expressed in units of time or in units of activity.
D)Cost allocation for natural resources.
E)The amount the company expects to receive for the asset at the end of its life.
F)The replacement of a major component of plant and equipment asset.
G)Allocates an equal amount of depreciable base to each period.
H)Estimates service life in terms of a measure of activity.
I)The difference between cost and residual value.
J)Multiplies book value by twice the straight-line rate.

Accepted Answer

The answer of Listed below are 10 terms followed by...

Question 18

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Accelerated methods
A)Allocation of cost for plant and equipment.
B)Is a change in accounting estimate.
C)Results from subsequent year correction of a material error.
D)Expenditures made to maintain a given level of benefits from an asset.
E)Generate declining amounts of depreciation over time.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 19

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Depreciation
A)Cost allocation for plant and equipment.
B)Results in depreciation declining by the same amount in subsequent years.
C)The reason for not amortizing goodwill.
D)Estimates service life in years.
E)Aggregates assets that are similar.

Accepted Answer

Depreciation is the accounting process of allocating the cost of tangible assets over their useful lives and is used to recover the investment in long-lived tangible business-use assets.

Question 20

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term.
-Group method
A)Cost allocation for plant and equipment.
B)Results in depreciation declining by the same amount in subsequent years.
C)The reason for not amortizing goodwill.
D)Estimates service life in years.
E)Aggregates assets that are similar.

Accepted Answer

The answer of Listed below are five terms followed by...

Quiz 11: Property, Plant, and Equipment and Intangible Assets: Utilization and Disposition

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Additions

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Change in useful life

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. -Double-declining balance

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Time-based method

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. -Amortization

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Residual value

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Sum-of-the-years'-digits method

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. -Service life

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Impairment

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Prior period adjustment

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. -Activity-based method

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Indefinite life

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Cost of defending intangible rights

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. -Improvements

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Rearrangements

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Repairs and maintenance

Listed below are 10 terms followed by a list of phrases that describe or characterize the terms. Match each phrase with the correct term. -Straight-line method

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Accelerated methods

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Depreciation

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms. Match each phrase with the correct term. -Group method