Match these terms with their correct definition.
-Cost less accumulated depreciation
A)Book value
B)Cost
C)Depletion
D)Depreciable cost
E)Depreciation
F)Impairment
G)Involuntary disposal
H)Residual value

Question

Quizplus · Accepted Answer

Answer: A
 Book value is calculated by subtracting the accumulated depreciation of an asset from its cost.

B) Cost: The initial expense incurred to acquire or produce an asset 
Answer: B
 Cost refers to the original price paid to acquire an asset or the cost incurred to produce it.

C) Depletion: The process of allocating the cost of natural resources over their useful life 
Answer: C
 Depletion is used to allocate the cost of natural resources, such as oil, gas, minerals, and timber, over their useful life.

D) Depreciable cost: The cost of an asset that can be depreciated over time 
Answer: D
 Depreciable cost is the portion of an asset's cost that can be depreciated over its useful life.

E) Depreciation: The method of allocating the cost of an asset over its useful life 
Answer: E
 Depreciation is the process of allocating the cost of an asset over its useful life using a predetermined method.

F) Impairment: A decrease in the value of an asset that is not recoverable 
Answer: F
 An impairment occurs when the value of an asset decreases and the decrease is not recoverable, resulting in a write-down of the asset's value.

G) Involuntary disposal: The loss of an asset due to theft, natural disaster, or condemnation 
Answer: G
 Involuntary disposal occurs when an asset is lost due to theft, natural disaster, or condemnation, and the owner has no control over the loss.

H) Residual value: The estimated value of an asset at the end of its useful life 
Answer: H
 Residual value is the estimated value of an asset at the end of its useful life and is used in calculating depreciation expense.

Match These Terms with Their Correct Definition