Problem F (30 points) Chpt.q Keu ttems& Relationships FILL-IN-THE-BLANK-PRINCIPL

Question

Problem F (30 points) Chpt.q Keu ttems& Relationships FILL-IN-THE-BLANK-PRINCIPLES AND TERMINOLOGY- INSTRUCTIONS: Complete each of the following statements by writing the appropriate words in the Answers column. For 0. The depreciation method that varies the amount of depreciation with the asset's usage is called Three common depreciation methods are units-of-production, AnswersScoring 1-2. units-of-production 0. and 2. 3. 4. 2 The periodic write-off of the cost of an intangible asset to expense is called Costs that are chargeable to an asset account or its related accumulated 3. 5. Cost of an asset minus its accumulated depreciation is called. 6. Long-ived assets that are useful in the operations of a business, that are 5. not held for sale, and that have no physical qualities are usually classified on the balance sheet as The following expenditures are related to land acquired for use by a busi- ness. Indicate the account that should be debited for each expenditure 7-9. 7. Cost of paving parking areas.. 8. Cost of razing unwanted building 9. Realty broker's commission paid in purchasing land 8. 10-13. The following expenditures are related to equipment acquired for use by a business. Indicate thè account that should be debited for each expenditure 10 10. Cost of vandalism on the equipmen 11. Special foundation . 12. New parts to replace those damaged in installation 13. Installation costs 14. A patent is referred to as a (n) . 15. The expense account for using natural resources is t during installation. 12. 13 14.

Explanation / Answer

Solution:

1) Straight line method

2) Declining balance method

3) The periodic write off of the cost of an intangible asset to expense is called “AMORTIZATION”

For Tangible asset it is called Depreciation.

4) Improvement

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Pls ask separate question for remaining parts.

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