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Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition by Donald E. Kieso, Paul D. Kimmel, Jerry J. Weygandt

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EXERCISE 9-11

Purpose: (L.O. 1 thru 8) This exercise will quiz you about terminology used in this chapter.

A list of accounting terms with which you should be familiar appears below:

Accele rated-depreciation method Licenses
Additio ns and improvements Materiality principle
Amortization Natural resources
Asset turnover ratio Ordinary repairs
Capital expenditures Patent
Copyright Plant assets
Declining-balance method Research and development (R & D) costs
Depletion Revenue expenditures
Depreciation Salvage value
Depreciable cost Straight-line method
Franchise (license) Trademark (trade name)
Going-concern assumption Units-of-activity method
Goodwill Useful life
Intangible assets

Instructions

For each item below, enter in the blank the term that is described.

  1. ________________Expenditures that increase the company's investment in productive facilities. Expenditures that relate to plant assets and benefit more than the current period.
  2. _______________Expenditures related to plant assets that are immediately charged against revenues as expense.
  3. _______________An estimate of an asset's value at the end of its useful life.
  4. ______________Tangible resources that are used in the operations of the business and are not intended for sale to customers.
  5. ______________Costs incurred to increase the operating efficiency, productive capacity, or expected useful life of a plant asset.
  6. _____________The process of allocating to expense the cost of a plant asset ...

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