Match the Terms with the Definitions

question 16

Multiple Choice

Match the terms with the definitions.
-The undepreciated cost of an asset (Cost − Accumulated Depreciation) .

• A)Accelerated Cost Recovery System (ACRS)
• B)intangible assets
• C)Modified Accelerated Cost Recovery System (MACRS)
• D)book value
• E)cash equivalent price
• F)conservatism
• G)straight-line method
• H)tangible assets
• I)depletion
• J)depreciable cost (base)
• K)trade-in allowance (trade value)
• L)double-declining-balance method
• M)functional depreciation
• N)units-of-production method

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Definitions:

Function

A relation between a set of inputs and allowable outputs, where each input is related to exactly one output.

Compounded Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Compounded Continuously

Pertains to the situation where interest is added to the principal balance of an investment, loan, etc., at an infinite number of times within a specified time period.

Balance

The equality between the sum of the debits and credits in an account, or the stability between opposing forces.