DEPRECIATION

Question 1

decrease in value of physical properties with time and use

Answer 1

Depreciation

Question 2

noncash cost to “match the yearly fraction of value used by an asset in the production of income over the asset’s life

Answer 2

Depreciation

Question 3

types of depreciation

Answer 3

internal and external

Question 4

occuers for normal causes like wear and tear and depletion

Answer 4

internal

Question 5

caused by external causes obsolescence and efflux of time and accident

Answer 5

external

Question 6

property for which depreciation is allowed under federal, municipal

Answer 6

Depreciation property

Question 7

machinery, vehicle, equipment, are example sof ___ property

Answer 7

personal

Question 8

land and anything attached to is an example of ___ property

Answer 8

real p

Question 9

types of depreceiation property

Answer 9

tangible, intangible

Question 10

two types of tangible prop

Answer 10

real, personal

Question 11

original cost basis, adjusted in increase and decreasweq

Answer 11

adjusted cost basis

Question 12

initial cost of acquiring an asset

Answer 12

basis or cost basis

Question 13

original cost baiss of the property

Answer 13

book value

Question 14

amount that will be paid by a willing buyee to a seller for a property

Answer 14

market value (MV)

Question 15

number of years over which property is recovered

Answer 15

recovery period

Question 15

estimated value of property at the end of its useful life

Answer 15

salvage value (SV)

Question 16

estimated period thatr a property will be used to produce income. It is how long the owner expects to productively use it

Answer 16

useful life

Question 17

annual cost of depreciation is in a fixed percentage of BV

Answer 17

declining balance method

Question 17

simplest depreciation method

Answer 17

straight-line method

Question 18

Decrease in value is a function of use of machines

Answer 18

units of production method

Question 18

decrease in the value of wasting assets

Answer 18

depletion method

Question 19

assets whose value gradually reducesin the account of use and exhusts completely

Answer 19

wasting assets

Question 20

Charge of depreciation is based on

Answer 20

total amount paid, total estimated quslity of output available.

Question 21

assessed as a function of gross revenue –allowable deductions

Answer 21

Income tax

Question 22

assessed as a function of the value of property owned (land, building, equipment) and the applicable tax rates.

Answer 22

Property tax

Question 23

assessed on the basis of purchases of goods and service (levied by state, municipal or country government) and thus independent of gross income or profit.

Answer 23

Sales tax

Question 24

federal taxes assessed as a function of the sale of certain goods or services considered non-necessities and are hence independent of the income or profit of a business.

Answer 24

Excise tax