Identification of Long Term Assets Terminology P.1 Listed below are common term associated with long-term assets: a. Tangible assets b. Natural resources c. Intangible assets d. Additions e. Betterments f. Extraordinary repair g. Depreciation h. Depletion i. Amortization j. Revenue expenditure k. Free cash flow Required Question #1 for each of the following statements, identify the term listed above with which it is associated. (If two terms apply, choose the one that is most closely associated) 1. Periodic cost associated with intangible assets. 2. Cost of constructing a new wing on a building 3. A measure of funds available for expansion. 4. A group of assets encompassing property, plant, and equipment. 5. Cost associated with enhancing a building but not expanding it 6. Periodic cost associated with tangible assets 7. A group of assets that gain their value from contracts or rights 8. Cost of normal repairs to a building 9. Assets whose value derives from what can be extracted from them. 10. Periodic cost associated with natural resources 11. Cost of a repair that extends the useful life of a building Question #2 Assuming the company uses cash for all of its expenditures, which of the items listed above would you expect to see on the income statement? Which ones would not result in an outlay of cash