Match the Items Below by Entering the Appropriate Code Letter

question 78

Short Answer

Match the items below by entering the appropriate code letter in the space provided.
A. Plant assets
B. Depreciation
C. Book value
D. Salvage value
E. Straight-line method
F. Units-of-activity method
G. Double-declining-balance method
H. MACRS
I. Revenue expenditure
J. Capital expenditure
1. Small expenditures which primarily benefit the current period.
2. Cost less accumulated depreciation.
3. An accelerated depreciation method used for financial statement purposes.
4. Tangible resources that are used in operations and are not intended for resale.
5. Equal amount of depreciation each period.
6. Expected cash value of the asset at the end of its useful life.
7. Allocation of the cost of a plant asset to expense over its useful life.
8. Material expenditures which increase an asset's operating efficiency, productive capacity, or useful life.
9. An accelerated depreciation method used for tax purposes.
10. Useful life is expressed in terms of units of production or expected use.

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Definitions:

Equivalent Unit

A concept used in process costing that represents the amount of work done on incomplete units, expressed in terms of fully completed units.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the average cost of all inventory units.

Process Costing System

An accounting method used to assign costs to units of production in industries where the production process is continuous.

Ending Work In Process

The balance of unfinished goods at the end of an accounting period, which includes material, labor, and overhead costs incurred.