1. As time passes, fixed assets, other than land, lose their capacity to provide
ID: 2370621 • Letter: 1
Question
1. As time passes, fixed assets, other than land, lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called (Points : 2)
equipment allocation.
depreciation. x
accumulation.
matching.
2. Deferred expenses (prepaid expenses) are items initially recorded as assets but are expected to become __________ over time. (Points : 2)
Liabilities
Assets
stockholders
1. As time passes, fixed assets, other than land, lose their capacity to provide useful services. To account for this decrease in usefulness, the cost of fixed assets is systematically allocated to expense through a process called (Points : 2)
equipment allocation.
depreciation. x
accumulation.
matching.
2. Deferred expenses (prepaid expenses) are items initially recorded as assets but are expected to become __________ over time. (Points : 2)
Liabilities
Assets
stockholders
Explanation / Answer
1.b
2.d
3.a
4.d
5.b
6.d
7.c
8.a
9.b
10.b
11.b
12.b
13.a
14.b
15.d
16.a
17.d
18.b
19.a
20.b
21.c
22.b
23.a
24.b
25.c
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