Select the necessary words from the list of possibilities to complete the following statements.

(acquisitions and retirements; capital lease; goodwill; net income; ownership; property tax; repairs and maintenance; retirement work orders; revenue; subsidiary ledger; working papers)

1. A December 30 acquisition of a new plant asset was recorded after year-end rather than prior to year-end. Such an error does not usually result in a significant misstatement of __.

2. A company should maintain a __ for plant and equipment, consisting of a separate record for each unit of property.

3. A dollar minimum ordinarily should be established to be used by accounting personnel for distinguishing between capital and __ expenditures.

4. To provide assurance that the accounting department is notified of property retirements, a system of serially numbered __ should be used by the company.

5. The auditor's principal objective in analyzing __ expense accounts is to discover property items that should have been capitalized.

6. In the auditor's first examination of a new client that has changed auditors, the beginning balances of property, plant, and equipment accounts may be substantiated by referring to the predecessor auditor's __.

7. The plant and equipment budget is designed to control __ of property items.

8. Possession of a deed is not proof of present __ of property.

9. Good evidence of ownership of property often is found by examining current __ bills.

10. The intangible asset known as __ arises in accounting for a business combination, and should be amortized as its value becomes impaired over the years.

11. A company may not actually own property recorded as an asset; instead the company may have rights to the asset under the terms of a __.