Question Details

Recording amortization each period is necessary 



1.	Accountants do not attempt to measure the change in a capital asset's market value during ownership because
		a.	the assets are not held for resale.
		b.	capital assets cannot be sold.
		c.	losses would have to be recognized.
		d.	it is management's responsibility to determine fair values.

	2.	Amortization is a process of
		a.	asset devaluation.
		b.	cost accumulation.
		c.	cost allocation.
		d.	asset valuation.

	3.	Recording amortization each period is necessary in accordance with the
		a.	going concern principle.
		b.	cost principle.
		c.	matching principle.
		d.	asset valuation principle.

	4.	In calculating amortization, residual value is
		a.	the fair market value of a capital asset on the date of acquisition.
		b.	subtracted from accumulated amortization to determine the capital asset's amortizable cost.
		c.	an estimate of a capital asset's value at the end of its useful life.
		d.	ignored in all the amortization methods.

	5.	When estimating the useful life of an asset, accountants do not consider
		a.	the cost to replace the asset at the end of its useful life.
		b.	obsolescence factors.
		c.	expected repairs and maintenance.
		d.	the intended use of the asset.





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