Question 1

Amortization

Accepted Answer

Gradual and periodic reduction of an intangible asset.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Question 2

Book Value

Accepted Answer

Amount that an asset shows on the balance sheet of a company.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Question 3

Capital Expenditure

Accepted Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 4

Depreciation

Accepted Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 5

Goodwill

Accepted Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Gradual and periodic reduction of an intangible asset.

Question 6

Impairment

Accepted Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 7

Patent

Accepted Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Gradual and periodic reduction of an intangible asset.

Question 8

Plant Asset

Accepted Answer

A building or group of buildings where something is made or processed.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Question 9

Salvage Value

Accepted Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

A building or group of buildings where something is made or processed.

Question 10

Useful Life

Accepted Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

A building or group of buildings where something is made or processed.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 11

Amortization

Accepted Answer

Gradual and periodic reduction of an intangible asset.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Question 12

Book Value

Accepted Answer

Amount that an asset shows on the balance sheet of a company.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Question 13

Capital Expenditure

Accepted Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

A building or group of buildings where something is made or processed.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 14

Depreciation

Accepted Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 15

Goodwill

Accepted Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Amount that an asset shows on the balance sheet of a company.

Question 16

Impairment

Accepted Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 17

Patent

Accepted Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Question 18

Plant Asset

Accepted Answer

A building or group of buildings where something is made or processed.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 19

Salvage Value

Accepted Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

A building or group of buildings where something is made or processed.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Question 20

Useful Life

Accepted Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

A building or group of buildings where something is made or processed.

Question 21

Amortization

Accepted Answer

Gradual and periodic reduction of an intangible asset.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 22

Book Value

Accepted Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 23

Capital Expenditure

Accepted Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Amount that an asset shows on the balance sheet of a company.

Question 24

Depreciation

Accepted Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

A building or group of buildings where something is made or processed.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Question 25

Goodwill

Accepted Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

A building or group of buildings where something is made or processed.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 26

Impairment

Accepted Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Question 27

Patent

Accepted Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

A building or group of buildings where something is made or processed.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Question 28

Plant Asset

Accepted Answer

A building or group of buildings where something is made or processed.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 29

Salvage Value

Accepted Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Question 30

Useful Life

Accepted Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Question 31

Amortization

Accepted Answer

Gradual and periodic reduction of an intangible asset.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

A building or group of buildings where something is made or processed.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Question 32

Book Value

Accepted Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Question 33

Capital Expenditure

Accepted Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

A building or group of buildings where something is made or processed.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Question 34

Depreciation

Accepted Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Gradual and periodic reduction of an intangible asset.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Question 35

Goodwill

Accepted Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Answer

A building or group of buildings where something is made or processed.

Answer

Expense allowance made for wear and tear on a tangible asset over its estimated useful life.

Answer

Amount that an asset shows on the balance sheet of a company.

Question 36

Impairment

Accepted Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Question 37

Patent

Accepted Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

Premium paid in the acquisition of an entity over the fair value of its identifiable tangible (and intangible) assets less liabilities.

Question 38

Plant Asset

Accepted Answer

A building or group of buildings where something is made or processed.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

Provides the inventor exclusive rights to an innovative process, design, or product for a designated period.

Answer

Amount that an asset shows on the balance sheet of a company.

Question 39

Salvage Value

Accepted Answer

Selling price assigned to retired fixed assets or merchandise unsalable through usual channels.

Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Gradual and periodic reduction of an intangible asset.

Question 40

Useful Life

Accepted Answer

The estimated lifespan of a depreciable fixed asset, during which it can be expected to contribute to company operations.

Answer

Amount that an asset shows on the balance sheet of a company.

Answer

Outlay of money to acquire or improve capital assets such as buildings and machinery.

Answer

A reduction in net asset value for an intangible asset with an indefinite life.

Question 41

When disposing of equipment, equipment should be credited.

Accepted Answer

True

Answer

-

Answer

-

Answer

False

Question 42

When disposing of equipment, accumulated depreciation should be debited.

Accepted Answer

True

Answer

-

Answer

-

Answer

False

Question 43

A gain on sale occurs when the cash received for selling an asset is greater than its book value.

Accepted Answer

True

Answer

False

Answer

-

Answer

-

Question 44

A loss on sale occurs when the cash received for selling an asset is less than its book value.

Accepted Answer

True

Answer

False

Answer

-

Answer

-

Question 45

Depreciation expense should be recorded as a debit.

Accepted Answer

True

Answer

False

Answer

-

Answer

-

Question 46

When accumulated depreciation increases, it is recorded as a credit.

Accepted Answer

True

Answer

False

Answer

-

Answer

-

Question 47

Double-declining depreciation expense is greater in earlier periods, compared to later periods.

Accepted Answer

True

Answer

-

Answer

-

Answer

False

Question 48

Double-declining depreciation expense is greater in early periods, compared to straight-line depreciation.

Accepted Answer

True

Answer

-

Answer

False

Answer

-

Question 49

Amortization is like depreciation, but for intangible assets with a determinate useful life.

Accepted Answer

True

Answer

False

Answer

-

Answer

-

Question 50

Impairment is like amortization, but for intangible assets with an indeterminate useful life.

Accepted Answer

True

Answer

-

Answer

-

Answer

False

Question 51

When disposing of equipment, equipment should be debited.

Accepted Answer

False

Answer

True

Answer

-

Answer

-

Question 52

When disposing of equipment, accumulated depreciation should be credited.

Accepted Answer

False

Answer

True

Answer

-

Answer

-

Question 53

A gain on sale occurs when the cash received for selling an asset is less than its book value.

Accepted Answer

False

Answer

-

Answer

True

Answer

-

Question 54

A loss on sale occurs when the cash received for selling an asset is greater than its book value.

Accepted Answer

False

Answer

True

Answer

-

Answer

-

Question 55

Depreciation expense should be recorded as a credit.

Accepted Answer

False

Answer

-

Answer

-

Answer

True

Question 56

When accumulated depreciation increases, it is recorded as a debit.

Accepted Answer

False

Answer

True

Answer

-

Answer

-

Question 57

Double-declining depreciation expense is greater in later periods, compareD to early periods.

Accepted Answer

False

Answer

-

Answer

True

Answer

-

Question 58

Double-declining depreciation expense is greater in later periods, compared to straight-line depreciation.

Accepted Answer

False

Answer

-

Answer

True

Answer

-

Question 59

Amortization is like depreciation, but for intangible assets with an indeterminate life.

Accepted Answer

False

Answer

-

Answer

True

Answer

-

Question 60

Impairment is like amortization, but for intangible assets with a determinate useful life.

Accepted Answer

False

Answer

-

Answer

True

Answer

-

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