Match Each Term with the Appropriate Definition

question 237

Multiple Choice

Match each term with the appropriate definition.Not all definitions will be used.
-Revenue expenditures

• A)Net sales revenue divided by average net fixed assets.
• B)Costs that are expensed in the period incurred.
• C)A contractual agreement that allows limited permission for use of a property.
• D)Net income divided by average total assets.
• E)An estimate of how long a tangible asset will last before it physically wears out.
• F)Asset cost minus residual value.
• G)Costs that are recorded as revenues.
• H)An estimate of how long a company will use a particular asset.
• I)Allocating the cost of tangible assets over their limited useful life.
• J)A cumulative record of depreciation expense,accumulated depreciation and book value.
• K)Asset cost minus accumulated depreciation.
• L)Grants the exclusive right to sell or use a creative work.
• M)The method whereby different parts of an asset may be depreciated over different useful lives under IFRS.
• N)The principle that companies wish to pay the lowest possible tax at the last possible time.
• O)Allocating the cost of intangible assets over their limited useful life.

---

Definitions:

Opportunity Cost

The expense incurred from not choosing the optimal alternative available during decision-making.

College Tuition

The fee that institutions of higher education charge for enrollment and instruction.

Forgone Income

Potential earnings not received by choosing one alternative over another, often considered in opportunity cost calculations.

Tuition

The fee charged by educational institutions for instruction and training, typically assessed per term or per course.