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Flashcards in Chapter 10 Deck (19):
1

When assets are purchased in a group for a single sum, it is referred to as a __________.

lump-sum purchase

2

The two important account issues related to self-constructed assets are:

1. treatment of interest charges
2. allocation of overhead

3

For self-constructed assets, the costs incurred include labor, materials, and __________.

overhead

4

A company acquires a mine and incurs costs such as expenditures to build tunnels and shafts before production may begin. These expenditures are classified as:

development costs

5

The allocation of the cost of natural resources to the periods extracted is referred to as __________ expense.

depletion

6

A(n) __________ is protected by law and gives the creator of a published work the exclusive rights to reproduce and sell the work for the life of the creator plus 70 years.

copyright

7

The costs to return land or other property to its original condition after extracting natural resources are referred to as:

restoration costs

8

A(n) __________ is an exclusive right to display a word, slogan, or emblem that distinctively identifies a company, product, or service.

trademark

9

A company decides to build a new store rather than purchasing an existing building. This type of asset is referred to as a(n):

self-constructed asset

10

The cost of land is capitalized, but the costs of land improvements are capitalized and __________.

depreciated

11

The accounting literature provides that intangible assets with __________ useful lives are not amortized.

indefinite

12

When a company receives an asset from an unrelated party by a donation, the assets are valued at __________ value.

fair

13

Because it is difficult to estimate the future value of research and development, FASB requires that R&D costs be treated as:

an expense on the income statement

14

An asset that is traded for another asset is treated as an exchange, whereas an asset that is sold or retired is treated as a(n) __________.

disposition

15

The approach used for accounting for self-constructed assets where all overhead costs are allocated to production and to self-constructed assets is called the __________ approach.

full-cost

16

For non-monetary exchanges, the assets are measured at fair value except when the transaction lacks __________ __________.

commercial substance

17

Accounting for land improvements requires that the land improvements are __________ and then __________ over periods benefited by their use.

capitalized and depreciated

18

An exchange of assets that has commercial substance is valued at the __________ value of the assets given or received, whichever is more clearly evident, but an exchange that lacks commercial substance is valued at the __________ value of the assets given.

fair and book

19

Obligations associated with the disposition of property, plant, equipment, and natural resources are called __________ __________ obligations.

asset retirement