Financial Accounting quiz

Question 1

Resources that have physical substance, are used in the operations of a business&are not intended for sale to customers.

Accepted Answer

Plant assets

Question 2

Indicates how efficiently a company uses assets to generate sales; calculated as net sales div. by average total asses.

Accepted Answer

Asset turnover

Question 3

Expenditures to maintain the operating efficiency & expected productive life of the asset.

Accepted Answer

Ordinary repairs

Question 4

Expenditures that are immediately charged against revenues as an expense.

Accepted Answer

Revenue expenditures

Question 5

A permanent decline in the fair value of an asset.

Accepted Answer

Impairment

Question 6

The process of allocating to expense the cost of a plant asset over its useful life in a rational & systematic manner.

Accepted Answer

Depreciation

Question 7

An exclusive right issued by the US Patent Office that enables the recipient to manufacture, sell, other control invent.

Accepted Answer

Patent

Question 8

A contractual agreement allowing one party to use the asset of another party; accounted for as a rental by the lessee.

Accepted Answer

Operating lease

Question 9

Costs incurred to increase the operating efficiency, productive capacity, or expected useful life of a plant assets.

Accepted Answer

Additions and improvements

Question 10

An exclusive right granted by the federal government allowing owner to reproduce & sell an artistic or published work.

Accepted Answer

Copyright

Question 11

A depreciation method in which companies expense an equal amount of depreciation for each year of asset’s useful life.

Accepted Answer

Straight-line method

Question 12

Expenditures that increase the company’s investment in plant assets.

Accepted Answer

Capital expenditures

Question 13

amount = to the fair value of asset given up or the fair value of the asset received, whichis more clearly determinable.

Accepted Answer

Cash equivalent price

Question 14

A word, phrase, jingle, or symbol that distinguishes or identifies a particular enterprise or product.

Accepted Answer

Trademark (trade name)

Question 15

A party that has agreed contractually to let another party use its asset for a period at an agreed price.

Accepted Answer

Lessor

Question 16

Expenditures that may lead to patents, copyright, new processes&new products; must be expensed as incurred.

Accepted Answer

Research and development costs

Question 17

A profitability measure that indicates amount of NI generated by each $ of assets; computed as NI Div. by average TA.

Accepted Answer

Return on assets

Question 18

A depreciation method in which useful life is expressed in terms of total units of production or use expected from asset

Accepted Answer

Units-of-activity method

Question 19

depre. method that applies constant rate to declining book value of asset & produces a decreasing annual depre. expense

Accepted Answer

Declining-balance method

Question 20

The cost of a plant asset less its salvage value.

Accepted Answer

Depreciable cost

Question 21

A depreciation method that produces higher depreciation expense in the early years than the straight-line approach.

Accepted Answer

Accelerated-depreciation method

Question 22

The process of allocating to expense the cost of an intangible asset.

Accepted Answer

Amortization

Question 23

The value of all favorable attributes that relate to a company that are not attributable to any other specific asset.

Accepted Answer

Goodwill

Question 24

A party that has made contractual arrangements to use another party’s asset for a period at an agreed price.

Accepted Answer

Lessee

Question 25

contractual arrangement under which franchisor grants franchisee the right to sell certain product, geographic area.

Accepted Answer

Franchise

Question 26

Rights,privileges,&competitive advantages that result from ownership of long-lived assets do not possess physical subst.

Accepted Answer

Intangible assets

Question 27

contractual agreement allowing 1 party to use another party’s asset; accounted for a debt-financial purchased by lessee.

Accepted Answer

Capital lease

Financial Accounting quiz

Questions 27

Financial Accounting quiz

Questions 27