FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY- INSTRUCTIONS: Complete each of the
ID: 2584394 • Letter: F
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FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY- INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column Scoring o. The depreciation method that varies the amount of depreciation with the 1-2 Three common depreciation s usage is called are units-of-pr 3. The periodic writo-off of the cost of an intangible asset to expense is 4. Costs that are chargeable to an asset account or its related accumulated depreciation account are te 5. Cost of an asset minus its accumutated depreciation is called 6. Long-live d assets that are usefud in the operations of a business, that are 6. not heid for sale, and that have no physical qualities are usually classitid 7-9. The following expenditures are related to land acquired for use by a busi ness. indicate the account that should be debited for each expenditure 7. Cost of paving parking areas ...................-. 8. Cost of razing unwanted building 9. Reaity broker's commission paid in purchasing land. 9 10. The following expenditures are related to equipment acquired for use by a business. Indicate the account that should be debited for each 10-13. 10. Cost of vandalism on the equipment during installation 11. Special foundation 12. New parts to replace those damaged in installation 12. 13. 14 15 13. Instalation costs 14. A patent is referred to as a (n). 15. The expense account for using natural resources isExplanation / Answer
1-2.
Three common depreciation methods are units-of-production, straight-line, and declining-balance method.
3.
The periodic write-off of the cost of an intangible asset to expense is called amortization.
Amortization refers to allocation of the cost of an intangible asset over its useful life. The amount of amortization is recorded as an expense and the value of the intangible asset is reduced by the amount of amortization.
4.
Costs that are chargeable to an asset account or its related accumulated depreciation account are termed depreciation expense.
Depreciation is allocation of the cost of a tangible asset over its useful life. The amount of depreciation is recorded as an expense and is accumulated over the life of the asset.
5.
Cost of an asset minus its accumulated depreciation is called book value.
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