Match Each of the Following Terms with the Appropriate Definitions

question 200

Multiple Choice

Match each of the following terms with the appropriate definitions.

-The process of allocating the cost of an intangible asset to expense over its estimated useful life.

• A)Obsolescence
• B)Amortization
• C)Depletion
• D)Salvage value
• E)Book value
• F)Land improvements
• G)Copyright
• H)Inadequacy
• I)Patent

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Definitions:

Promissory Note

A written promise to pay a specified sum of money to a designated person at a fixed or determinable future time.

Creditor

Someone who has a claim to assets.

Promissory Note Payable

A financial instrument that signifies a written promise by one party to pay a specific sum of money to another party under agreed terms.

360-Day Year

A simplified method of calculating interest for commercial loans or bonds that assumes each month has 30 days, resulting in a 360-day year.