Fill in the Blanks: Chapter Ten
1. A ____________ lump-sum purchase occurs when a package of assets are acquired for a single purchase price amount.
2. The cost/benefit theme is consistent with the concept of ____________materiality, which refers to the significance of a particular item or transaction.
4. Many lease agreements provide a period of use nearly equal to the entire service life of the leased assets. Such agreements frequently contain a provision for the lessee to acquire the property at a bargain purchase price, and are called ____________capital leases.
5. Another name for economic or useful life is ____________service life.
7. One of the most popular depreciation methods is the ____________straight-line method.
9. An accelerated depreciation method which involves applying a fixed depreciation rate to the remaining book value of an asset is known as the ____________declining balance method.
10. Tax laws permit asset cost to be charged against specific years via use of the ____________modified accelerated cost recovery system.
11. A common fallacy about accumulated depreciation is that the account contains ____________cash .