Match Each of the Following Terms with the Appropriate Definitions

question 1

Short Answer

Match each of the following terms with the appropriate definitions.
a. Depletion
b. Betterment
c. Ordinary repairs
d. Units-of production method
e. Intangible assets
f. Accelerated depreciation
g. Amortization
h. Goodwill
i. Total asset turnover
j. Revenue expenditure
_____ 1. The amount by which the company's value exceeds the value of its individual assets and liabilities.
_____ 2. A cost reported as an expense on the current income statement because it does not provide a material benefit in future periods.
_____ 3. An expenditure that makes a plant asset more efficient or productive.
_____ 4. A method of depreciation that yields larger expense during the early years of an asset's life and smaller expense in the later years.
_____ 5. Expenditures to keep a plant asset in normal, good operating condition.
_____ 6. The process of allocating the cost of a natural resource to the period when it are consumed.
_____ 7. A measure of a company's effectiveness in using its assets to generate sales.
_____ 8. The process of systematically allocating the cost of an intangible asset to expense over its estimated useful life.
_____ 9. A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage.
_____ 10. Certain nonphysical assets used in operations that confer long-term rights, privileges, or competitive advantages on their owners.

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Definitions:

Adjusting Entry

A journal entry made at the end of an accounting period to record any unrecognized income or expenses for that period.

Debit

An entry on the left side of an account, indicating an increase in assets or expenses or a decrease in liabilities, equity, or revenue.

Credit

The ability of a customer to obtain goods or services before payment, based on the trust that payment will be made in the future.

Supplies Account

An account used in accounting to keep track of the amount spent on supplies not yet used or consumed by the business.