Listed Below Are Five Terms Followed by a List of Phrases

question 75

Short Answer

Listed below are five terms followed by a list of phrases that describe or characterize the terms.Match each phrase with the best term placing the letter designating the term in the space provided.
a.Amortization
b.Depletion
c.Straight-line method
d.Declining-balance method
e.Activity-based method
Phrases:
_____ The process of recording expense for natural resources.
_____ Allocates an asset's cost based on its use.
_____ An accelerated depreciation method that records more depreciation in earlier years and less depreciation in later years.
_____ Allocating the cost of an intangible asset over its service life.
_____ Allocates an equal amount of depreciation to each year of the asset's service life.

---

Definitions:

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts in preparation for the next accounting period.

Financial Statements

Formal records that outline the financial activities and condition of a business, organization, or individual, commonly including the balance sheet, income statement, and cash flow statement.

Balance Sheet Columns

Columns typically found in a balance sheet used to report a company's financial position at a certain point in time, showing assets, liabilities, and shareholders' equity.

Income Statement Columns

The segments in an income statement (profit and loss statement) that categorize financial data into revenues, expenses, and net income over a specific period.