exam 3 accounting

Straight-line depreciation can be calculated by taking:

(cost minus salvage value)/useful life

Copyrights, trademarks, and other intangible assets are expensed over their useful lives through the process of:

Amortization

__ is the process of allocating the cost of a plant asset to expense while it is in use.

Depreciation

Book value is greater than the selling price Book value is less than the selling price matches Book value is equal to the selling price

Loss on sale of asset Gain on sale of asset No gain or loss recognized

______ are expenditures that make a plant asset more efficient or productive, but do not always increase an asset's useful life.

betterments

When a company revises an estimate used to record depreciation expense, the company should revise depreciation by using the formula (__ - revised salvage value)/revised remaining useful life.

book value (cost - acc dep)

The process of allocating the cost of a plant asset to expense while it is in use is called

depreciation

A company owns an asset that is fully depreciated. The asset is no longer being used in operations and has no market value. The company has decided to Blank______ the asset by recording an entry to remove it from the balance sheet.

discard (dispose)

Land _____are assets that are additions to land and have limited useful lives, such as walkways and fences.

improvements

______ are nonphysical assets used in operations that give companies long-term rights, or competitive advantages.

intangible assets

______ are assets that are physically consumed when used, such as mineral deposits and oil and gas fields.

natural

______ are expenditures that keep an asset in good operating condition. They are necessary if an asset is to perform to expectations over its useful life.

ordinary repairs

___assets purchased as a group in a single transaction for a lump-sum price are allocated the purchase price based on their relative market values.

plant

______expenditures are additional costs of plant assets that do not materially increase the asset's life or capabilities.

revenue