(a) Depletionf the following terms a through j with the appropriate definitions
ID: 2577356 • Letter: #
Question
(a) Depletionf the following terms a through j with the appropriate definitions (1) through (10) (b) Betterment (c) Ordinary repairs (d) Units-of production method (e) Intangible assets (f) Accelerated depreciation (g) Change in accounting estimate (h) Goodwill (i) Total asset turnover G) Revenue expenditure (1) The amount by which the company's value exceeds the value of its individual assets and liabilities. (2) An expenditure reported on the current income statement as an expense because it does not provi material benefit in future periods. (3) An expenditure to make a plant asset more efficient or productive. (4) A method that yields larger depreciation expense during the early years of an asset's life and smaller expense in the later years. (5) Expenditures made to keep a plant asset in normal, good operating condition. (6) The process of allocating the cost of natural resources to periods when they are consumed. (7) A measure of a company's ability to use its assets to generate sales. (8) A change in a financial statement amount that results from new information, subsequent developments, better insight, or improved judgment. life depending on its usage. or competitive advantages. (9) A depreciation method that charges a varying amount to expense for each period of an asset's useful (10) Certain nonphysical assets used in operations that confer on their owners long-term rights, privileges,
Explanation / Answer
No. Explanation 1 Goodwill Goodwill =Net asset-liabilities 2 Revenue expenditure Charged in a period in which incurred as it does not give benefit in coming years 3 Betterment Increase in efficiency of asset is to be capitalized 4 Accelerated depreciation Since the carrying value of asset decreases with use as a result depreciation decreases 5 ordinary repairs Does not increase efficiency of asset 6 Depletion Decrease in value of intagible with use 7 Total asset turnover Measures Per dollar sales with use of asset 8 change in accounting estimate Changes due to change in facts or judgements 9 units of production method charge depreciation on the basis of units produced 10 Intangible asset can be seen but provides intangible benefits in the form of rights ,privileges etc.
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