The following is a list of words or phrases introduced in the chapter. 

1. Capital expenditures. 

2. Goodwill. 

3. Plant assets. 

4. Lessor. 

5. Patent. 

6. Copyright. 

7. Impairment. 

8. Accelerated-depreciation method. 

9. Intangible assets. 

10. Declining-balance method. 

11. Amortization. 

12. Lessee. 

13. Trademark (trade name). 

14. Ordinary repairs. 

15. Units-of-activity method. 

Instructions 

Match the word or phrase above with its description below. 

a._________Any depreciation method that produces higher depreciation expense in the early years than the straight-line approach. 

b._________The process of allocating to expense the cost of an intangible asset. 

c._________Expenditures that increase the company’s investment in plant assets. 

d._________A depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the asset’s useful life. 

e._________A permanent decline in the fair value of an asset. 

f._________Rights, privileges, and competitive advantages that result from the ownership of longlived assets that do not possess physical substance. 

g._________A party that has made contractual arrangements to use another party’s asset for a period at an agreed price. 

h._________A party that has agreed contractually to let another party use its asset for a period at an agreed price. 

i._________Expenditures to maintain the operating efficiency and expected productive life of the asset. 

j._________Resources that have physical substance, are used in the operations of a business, and are not intended for sale to customers. 

k._________A depreciation method in which useful life is expressed in terms of the total units of production or use expected from the asset. 

l._________An exclusive right granted by the federal government allowing the owner to reproduce and sell an artistic or published work.

m._________A word, phrase, jingle, or symbol that distinguishes or identifies a particular enterprise or product. 

n._________An exclusive right issued by the U.S. Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant. 

o._________The value of all favorable attributes that relate to a company that are not attributable to any other specific asset.