Match each of the following terms with the appropriate definitions.

Question

A. The process of allocating the cost of a natural resource to the period when it is consumed.
B. The amount by which the company's value exceeds the value of its individual assets and liabilities.
C. Certain nonphysical assets used in operations that confer long-term rights, privileges, or competitive advantages on their owners.
D. A depreciation method that charges a varying amount to expense for each period of an asset's useful life depending on its usage.
E. A measure of a company's effectiveness in using its assets to generate sales.
F. A method of depreciation that yields larger expense during the early years of an asset's life and smaller expense in the later years.
G. An expenditure that makes a plant asset more efficient or productive.
H. The process of systematically allocating the cost of an intangible asset to expense over its estimated useful life.
I. Expenditures to keep a plant asset in normal, good operating condition.
J. A cost reported as an expense on the current income statement because it does not provide a material benefit in future periods.

Answer 1

A. Depletion
B. Goodwill
C. Intangible assets
D. Units-of production method
E. Total asset turnover
F. Accelerated depreciation
G. Betterment
H. Amortization
I. Ordinary repairs
J. Revenue expenditure