ACCOUNTING TOOLS FOR BUSINESS
DECISION MAKING COMPREHENSIVE
EXAM SCRIPT VERIFIED QUESTIONS AND
SOLUTIONS GRADED APLUS
●● Property, Plant, and Equipment (PP&E)
Answer: Long-term assets used in business operations that are not
intended for resale.
●● Revenue Expenditure
Answer: A cost incurred to maintain an asset's current operating
condition; recorded as an expense.
●● Capital Expenditure
Answer: A cost that increases an asset's usefulness, efficiency, or useful
life; recorded as an asset.
●● Residual Value
Answer: Estimated value of an asset at the end of its useful life.
●● Useful Life
Answer: Estimated length of time an asset will be productive for a
company.
, ●● Declining-Balance Depreciation
Answer: Accelerated depreciation method producing higher depreciation
expense in early years.
●● Double-Declining-Balance Method
Answer: An accelerated depreciation method using twice the straight-
line rate.
●● Depreciable Cost
Answer: Cost of an asset minus its salvage value.
●● Asset Turnover Ratio
Answer: Net Sales / Average Total Assets; measures efficiency in using
assets to generate sales.
●● Ordinary Repairs
Answer: Expenditures to maintain operating efficiency and expected
productive life of an asset.
●● Extraordinary Repairs
Answer: Major repairs that extend the useful life of an asset.
DECISION MAKING COMPREHENSIVE
EXAM SCRIPT VERIFIED QUESTIONS AND
SOLUTIONS GRADED APLUS
●● Property, Plant, and Equipment (PP&E)
Answer: Long-term assets used in business operations that are not
intended for resale.
●● Revenue Expenditure
Answer: A cost incurred to maintain an asset's current operating
condition; recorded as an expense.
●● Capital Expenditure
Answer: A cost that increases an asset's usefulness, efficiency, or useful
life; recorded as an asset.
●● Residual Value
Answer: Estimated value of an asset at the end of its useful life.
●● Useful Life
Answer: Estimated length of time an asset will be productive for a
company.
, ●● Declining-Balance Depreciation
Answer: Accelerated depreciation method producing higher depreciation
expense in early years.
●● Double-Declining-Balance Method
Answer: An accelerated depreciation method using twice the straight-
line rate.
●● Depreciable Cost
Answer: Cost of an asset minus its salvage value.
●● Asset Turnover Ratio
Answer: Net Sales / Average Total Assets; measures efficiency in using
assets to generate sales.
●● Ordinary Repairs
Answer: Expenditures to maintain operating efficiency and expected
productive life of an asset.
●● Extraordinary Repairs
Answer: Major repairs that extend the useful life of an asset.
