Match each of the following terms with the appropriate definitions.

Question

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

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

Answer 1

1. B) Goodwill
2. D) Revenue expenditure
3. G) Betterment
4. I) Accelerated depreciation
5. H) Ordinary repairs
6. C) Depletion
7. A) Total asset turnover
8. B) Goodwill
9. F) Units-of production method
10. E) Intangible assets