Chapter 4

Question 1

Cost recovery?

Answer 1

Accounting depreciation

Question 2

Loss of market value from all causes?

Answer 2

Appraising Depreciation

Question 3

Accounting report indicating the assets, liabilities and capital accounts of business as of a specific date?

Answer 3

Balance sheet

Question 4

A dollar amount used to determine if an asset will be capitalized and placed on the depreciation schedule?

Answer 4

Capitalization threshold

Question 5

Used by accountants to calculate the measured expense to be taken within a certain revenue period

Answer 5

Depreciation schedule

Question 6

A financial statement that summarizes the amount of revenues earned and expenses incurred but a business over a designated or specific date

Answer 6

Income statement

Question 7

Requires accountants to match expense against revenues

Answer 7

The matching principle

Question 8

Straight line depreciation

Annual depreciation =

Answer 8

Cost minus salvage divided by eco life years