Reference no: EM132704325

Problem 1: The process of allocating the cost of natural resources such as metal ores and coal to an expense account is called

Option 1: amortization
Option 2: depletion
Option 3: depreciation
Option 4: deferral

Problem 2: The cost of a fixed asset account minus the related accumulated depreciation account is referred to as

Option 1: contra asset
Option 2: market value
Option 3: book value
Option 4: historical cost

Problem 3: A retirement plan which promises employees a specific annual benefit upon retirement, based on years of service and compensation, is called a(n)

Option 1: funded plan
Option 2: defined benefit plan
Option 3: defined contribution plan
Option 4: unfunded plan

Problem 4: The term that refers to the allocation of the cost of an intangible asset to expense because of the decline in its usefulness is

Option 1: allocation
Option 2: amortization
Option 3: depreciation
Option 4: depletion