Understanding Asset Valuation and Depreciation

What is the term used for the value of an asset determined by tax authorities for the purpose of calculating taxes?

• Market Value

• Assessed Value

• Book Value

• Salvage Value

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DOK Level 2: Skill/Concept

Which of the following is considered personal property?

• Land

• Buildings

• Vehicles

• Trees

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DOK Level 2: Skill/Concept

What is an increase in equity resulting from activity other than selling goods or services called?

• Revenue

• Gain

• Profit

• Dividend

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DOK Level 2: Skill/Concept

What is the accounting form called on which a business records information about each plant asset?

• Asset Ledger

• Depreciation Schedule

• Plant Asset Record

• Balance Sheet

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DOK Level 2: Skill/Concept

Which method of depreciation records greater depreciation expense in the early years and less in the later years?

• Straight-Line Method

• Units of Production Method

• Double Declining Balance Method

• Sum-of-the-Years'-Digits Method

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DOK Level 2: Skill/Concept

What is a decrease in equity resulting from activity other than selling goods or services called?

• Loss

• Expense

• Liability

• Cost

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DOK Level 2: Skill/Concept

What term describes land and anything attached to the land?

• Real Property

• Personal Property

• Intangible Property

• Movable Property

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DOK Level 2: Skill/Concept

What is the decrease in equity that results when a plant asset is sold for less than its book value?

• Depreciation

• Loss on Sale

• Amortization

• Impairment

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DOK Level 2: Skill/Concept

What is a declining-balance rate that is two times the straight-line rate called?

• Double Declining Balance Rate

• Accelerated Depreciation Rate

• Straight-Line Rate

• Sum-of-the-Years'-Digits Rate

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DOK Level 2: Skill/Concept

What is the process of spreading the cost of an intangible asset over its useful life called?

• Depreciation

• Amortization

• Depletion

• Capitalization

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DOK Level 2: Skill/Concept