Solved

Match Each of the Appropriate Definitions with Correct Term

Question 258

Matching

Match each of the appropriate definitions with correct term.

Premises:

Responses:

The process of allocating the cost of natural resources to the periods when they are consumed.

Assets that increase the benefits of land, have a limited useful life, and are subject to depreciation.

Book value

Improvements to leased property made by the lessee.

Salvage value

A process of becoming outdated and no longer used.

Land improvements

The total cost of a plant asset less its accumulated depreciation.

Patent

Major repairs that extend the useful life of a plant asset beyond its original estimate.

Extraordinary repairs

An exclusive right granted to its owner to manufacture and sell an item, or to use a process, for 20 years.

Inadequacy

A right granted that gives its owner the exclusive privilege to publish and sell musical, literary, or artistic work during the life of the creator plus 70 years.

Depletion

The insufficient capacity of plant assets to meet the company's productive demands.

Obsolescence

An estimate of an asset's value at the end its benefit period.

Leasehold improvements

Premises:

The process of allocating the cost of natural resources to the periods when they are consumed.

Assets that increase the benefits of land, have a limited useful life, and are subject to depreciation.

Improvements to leased property made by the lessee.

A process of becoming outdated and no longer used.

The total cost of a plant asset less its accumulated depreciation.

Major repairs that extend the useful life of a plant asset beyond its original estimate.

An exclusive right granted to its owner to manufacture and sell an item, or to use a process, for 20 years.

A right granted that gives its owner the exclusive privilege to publish and sell musical, literary, or artistic work during the life of the creator plus 70 years.

The insufficient capacity of plant assets to meet the company's productive demands.

An estimate of an asset's value at the end its benefit period.

Responses:

Book value

Salvage value

Land improvements

Patent

Extraordinary repairs

Inadequacy

Depletion

Obsolescence

Leasehold improvements

Correct Answer:

Premises:

Responses:

The process of allocating the cost of natural resources to the periods when they are consumed.

Assets that increase the benefits of land, have a limited useful life, and are subject to depreciation.

Improvements to leased property made by the lessee.

A process of becoming outdated and no longer used.

The total cost of a plant asset less its accumulated depreciation.

Major repairs that extend the useful life of a plant asset beyond its original estimate.

An exclusive right granted to its owner to manufacture and sell an item, or to use a process, for 20 years.

A right granted that gives its owner the exclusive privilege to publish and sell musical, literary, or artistic work during the life of the creator plus 70 years.

The insufficient capacity of plant assets to meet the company's productive demands.

An estimate of an asset's value at the end its benefit period.