Accounting chapter 11 Depreciation, Depletion, and Amortization Questions With 100% Verified Answers.
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Course
AMORTIZATION
Institution
AMORTIZATION
Give some examples of long term assets? - correct answer Property, Plant, Equipment, and Intangibles
What makes an asset long-term? - correct answer They have benefits over a prolonged period of time.
When should the co...
Accounting chapter 11 Depreciation,
Depletion, and Amortization
Give some examples of long term assets? - correct answer Property, Plant,
Equipment, and Intangibles
What makes an asset long-term? - correct answer They have benefits over a
prolonged period of time.
When should the costs for these long term assets such as property, plant, and equipment be
recognized? - correct answer Over a period of time as the benefits are obtained.
What are the three methods for allocating costs to long-term assets? DDA - correct answer
Depreciation, Depletion, and Amortization
Which long- term asset is each of the three methods of depreciation, depletion, and amortization used
for? - correct answer Depreciation is used for Property, Plant and Equipment.
Depletion is used for Natural Resources
Amortization is used for intangible assets with finite lives.
What are the three things we need in order to measure long-term asset cost allocation? - correct answer
Cost allocation base, allocation period, and allocation method.
What is cost allocation base? - correct answer The amount of costs to be allocated.
Aquisition cost- any salvage or residual value.
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