In: Accounting
Match each of the following terms with the appropriate definitions.
Question 1 options:
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SOLUTION
1. | Major repairs that extend the useful life of a plant asset beyond its original estimate | Extraordinary repairs |
2. | An exclusive right granted to its owner to manufacture and sell an item, or to use a process, for 20 years | Patent |
3. | A condition where a plant asset is no longer useful in producing goods or services with a competitive advant | Obsolescence |
4. | Assets that increase the benefits of land, have a limited useful life, and are subject to depreciation | Land improvements |
5. | The total cost of a plant asset less its accumulated depreciation | Book value |
6. | The insufficient capacity of plant assets to meet the company's productive demands | Inadequacy |
7. | A right granted that gives its owner the exclusive privilege to publish and sell musical, literary, or artistic work | Copyright |
8. | An estimate of an asset's value at the end of its benefit period | Salvage value |
9. | Alternations or improvements to leased property made by the lessee | Leasehold improvements |
10. | The process of allocating the cost of natural resources to the periods when they are consumed | Depletion |