Depreciation Concepts Listed below are concepts and terminology related to depreciation. Required: Match each concept with the related terminology. 1. The period of time over which the company anticipates deriving benefit from the use of the asset 2. The cost of the asset minus its accumulated depreciation 3. The total amount of depreciation expense that has been recorded for an asset since the asset was acquired 4. The amount of cash or trade-in consideration that the company expects to receive when an asset is retired from service 5. A process of cost allocation, not an attempt to measure the fair value of an asset Terminology: depreciation accumulated depreciation book value estimated useful life residual value
Depreciation Concepts Listed below are concepts and terminology related to depreciation. Required: Match each concept with the related terminology. 1. The period of time over which the company anticipates deriving benefit from the use of the asset 2. The cost of the asset minus its accumulated depreciation 3. The total amount of depreciation expense that has been recorded for an asset since the asset was acquired 4. The amount of cash or trade-in consideration that the company expects to receive when an asset is retired from service 5. A process of cost allocation, not an attempt to measure the fair value of an asset Terminology: depreciation accumulated depreciation book value estimated useful life residual value
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
24.
Listed below are concepts and terminology related to depreciation.
Required:
Match each concept with the related terminology.
| 1. | The period of time over which the company anticipates deriving benefit from the use of the asset |
| 2. | The cost of the asset minus its |
| 3. | The total amount of depreciation expense that has been recorded for an asset since the asset was acquired |
| 4. | The amount of cash or trade-in consideration that the company expects to receive when an asset is retired from service |
| 5. | A |
Terminology:
depreciation
accumulated depreciation
book value
estimated useful life
residual value
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