Chapter 11 Flashcards
1
Q
depreciation
A
is the accounting process of allocating the cost of tangible assets to expense in a systematic and rational those periods expected to benefit from the use of the asset.
2
Q
fixed assets
A
depreciation expense
3
Q
intangibles
A
amortization expense
4
Q
natural resources
A
depletion expenses
5
Q
natural resource
A
aka wasting assets, include petroleum, minerals and timber
1. complete removal of asset
6
Q
establishing a depletion base
A
- acquisition cost
- exploration costs
- development costs
- restoration cost
7
Q
asset turnover
A
net sales/average total asset
8
Q
profit margin on sales
A
net income/net sales
9
Q
return on assets
A
net income/average total assets
