Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE 9-11

Purpose:

(L.O. 1 thru 8) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below:

Accele rated-depreciation method	Licenses
Additio ns and improvements	Materiality principle
Amortization	Natural resources
Asset turnover ratio	Ordinary repairs
Capital expenditures	Patent
Copyright	Plant assets
Declining-balance method	Research and development (R & D) costs
Depletion	Revenue expenditures
Depreciation	Salvage value
Depreciable cost	Straight-line method
Franchise (license)	Trademark (trade name)
Going-concern assumption	Units-of-activity method
Goodwill	Useful life
Intangible assets

Instructions

For each item below, enter in the blank the term that is described.

1. ________________Expenditures that increase the company's investment in productive facilities. Expenditures that relate to plant assets and benefit more than the current period.
2. _______________Expenditures related to plant assets that are immediately charged against revenues as expense.
3. _______________An estimate of an asset's value at the end of its useful life.
4. ______________Tangible resources that are used in the operations of the business and are not intended for sale to customers.
5. ______________Costs incurred to increase the operating efficiency, productive capacity, or expected useful life of a plant asset.
6. _____________The process of allocating to expense the cost of a plant asset ...