Reversed Chapter (9) Flashcards Preview

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Flashcards in Reversed Chapter (9) Deck (19)
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1
Q

A depreciation method that provides for a higher depreciation amount in the first year of the asset’s use; followed by a gradually declining amount of depreciation.

A

accelerated depreciation method

2
Q

The periodic transfer of the cost of an intangible asset to expense.

A

account form

3
Q

The cost of a fixed asset minus accumulated depreciation on the asset.

A

book value

4
Q

The amount a buyer owes a seller when a fixed asset is traded in on a similar asset.

A

boot

5
Q

The costs of acquiring fixed assets; adding to a fixed asset; improving a fixed asset; or extending a fixed asset’s useful life.

A

capital expenditures

6
Q

An exclusive right to publish and sell a literary; artistic; or musical composition.

A

copyright

7
Q

The process of transferring the cost of natural resources to an expense account.

A

depletion

8
Q

The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.

A

depreciation

9
Q

A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.

A

double-declining-balance method

10
Q

The number of dollars of sales that are generated from each dollar of average fixed assets during the year; computed by dividing the net sales by the average net fixed assets.

A

fixed asset turnover ratio

11
Q

An intangible asset that is created from such favorable factors as location; product quality; reputation; and managerial skill.

A

goodwill

12
Q

Long-term assets that are useful in the operations of a business; are not held for sale; and are without physical qualities.

A

intangible assets

13
Q

Exclusive rights to produce and sell goods with one or more unique features.

A

patents

14
Q

The estimated value of a fixed asset at the end of its useful life.

A

residual value

15
Q

Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets.

A

revenue expenditures

16
Q

A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.

A

straight-line method

17
Q

The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.

A

trade-in allowance

18
Q

A name; term; or symbol used to identify a business and its products.

A

trademark

19
Q

A method of depreciation that provides for depreciation expense based on the expected productive capacity of a fixed asset.

A

units-of-output method