Match these terms with their correct definition.
-The process of allocating the cost of a natural resource to each period in which the resource is used
A)Book value
B)Cost
C)Depletion
D)Depreciable cost
E)Depreciation
F)Impairment
G)Involuntary disposal
H)Residual value

Question

Quizplus · Accepted Answer

Depletion is the process of allocating the cost of a natural resource to each period in which the resource is used.

Answer: B 
 Cost refers to the amount of money spent on an asset or expense.

Answer: E 
 Depreciation is the process of allocating the cost of a tangible asset over its useful life.

Answer: D 
 Depreciable cost is the cost of an asset that can be depreciated.

Answer: H 
 Residual value is the estimated value that an asset will have at the end of its useful life.

Answer: F 
 Impairment refers to a decrease in the value of an asset, which may require a write-down of its value.

Answer: G 
 Involuntary disposal refers to the loss of an asset due to events beyond the company's control, such as theft or natural disaster.

Answer: A 
 Book value refers to the value of an asset as it appears on the company's balance sheet, which is calculated as the asset's original cost minus accumulated depreciation.

Match These Terms with Their Correct Definition