The write-off of the cost of an intangible asset is called
a. physical depreciation.
b. functional depreciation.
c. amortization.
d. deterioration.
c
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According to GAAP, interest must be capitalized for
A) assets that are ready for use. B) assets constructed for a firm's own use. C) assets that are not being used in the earning activities of the company. D) inventories that are produced in large quantities on a repetitive basis.
The term used to describe the allocation of the cost of an intangible asset to the periods it benefits is
A) depletion. B) apportionment. C) amortization. D) depreciation.
One of the four general criteria for a capital lease is that the present value at the beginning of the lease term of the minimum lease payments equals or exceeds
a. the property's fair market value. b. 90 percent of the property's fair market value. c. 75 percent of the property's fair market value. d. 50 percent of the property's fair market value.
The proportionality assumption may fail under certain conditions such as:
a. Economies of scale. b. Buy one, get a second item of an equal or lower price for free. c. Both a and b d. Neither a nor b