I like deducts and I cannot lie
Depreciation method that produces higher depreciation expense in the early years than in the later years
What is accelerated-depreciation
Costs incurred to increase the operating efficiency, productive capacity, or useful life of a plant asset
What are additions and improvements
An exclusive right issued by the US Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant
What is a Patent
States that the company will continue in operation for the foreseeable future
What is the going-concern assumption
A word, phrase, jingle, or symbol that identifies a particular enterprise or product
What is a trademark (trade name)
Allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner
What is amortization
The cost of a plant asset less its salvage value
What is the depreciable cost
A contractual arrangement under which the franchisor grants the franchisee the right to sell certain products, perform specific services, or use certain trademarks or trade names, usually within a designated geographhic area
What is a franchise (license)
If an item would not make a difference in decision-making, a company does not have to follow GAAP in reporting it
What is the materiality concept
An estimate of expected productive life, also called service life, or an asset
What is the useful life
Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset
What is the declining balance method
Expenditures to maintain the operating efficiency and productive life of the unit
What are ordinary repairs
The value of all favorable attributes that relate to a company that is not attributable to any other specific asset
What is goodwill
A measure of how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets
What is asset- turnover
One of these factors does not affect the computation of depreciation
Cost, salvage value, book value, useful life
What is book value
The allocation of the cost of a natural resource to expense in a rational and systematic manner over the resource's useful life
What is depletion
Expenditures that may lead to patents, copyrights, new processes, or new products
What is Research and Development(R&D) costs
Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
What are intangible assets
Tangible resources that are used in the operations of the business and are not intended for sale to customers
What are plant assets
Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
What is the units of activity method
Depreciation method in which periodic depreciation is the same for each year of the asset's useful life
What is the straight-line method
Expenditures that are immediately charged against revenues as an expense
What is revenue expenditures
Assets that consist of standing timber and underground deposits of oil, gas, and minerals
What are natural resources
An estimate of an asset's value at the end of its useful life
What is the salvage value
The amortization period of an intangible asset can exceed _______ years
What is 20