Match the Terms with the Definitions

question 64

Multiple Choice

Match the terms with the definitions.
-The loss of usefulness because of deterioration from age and wear.

• A)Accelerated Cost Recovery System (ACRS)
• B)accelerated depreciation methods
• C)amortization
• D)trademark
• E)cash equivalent price
• F)long-term assets
• G)copyright
• H)cost
• I)patent
• J)depreciable cost (base)
• K)depreciation
• L)physical depreciation
• M)tangible assets
• N)sum-of-the-years'-digits method
• O)salvage value
• P)property, plant, and equipment

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Definitions:

Securities

Financial instruments that represent an ownership position in a publicly-traded corporation (stock), a creditor relationship with a governmental body or a corporation (bond), or rights to ownership as represented by an option.

Like-Kind Exchange

A tax deferral for the exchange of business or investment properties that are of the same nature or character, without cash being involved.

Gain Recognition

The process by which gains from the sale or exchange of assets are reported for tax purposes.

Involuntary Conversion

The forced exchange of an asset for compensation, such as through eminent domain or destruction, where the proceeds may qualify for special tax treatment.