QUESTION 1 Match the term with the description. Assets used in operations that are long-term and usually depreciated. When a company constructs their own assets, such as a warehouse. Used to maintain plant assets in operating condition. The amount of interest cost during the period that a company could theoretically avoid if it had not made expenditures for an asset. When a company weights the expenditures by the amount of time that it can incur interest cost on each one. The substitution of a similar asset. Money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment. When a company purchases a group of assets for a single price. An exchange in which the future cash flows change as a result of the transaction. When as asset's service is terminated through fire, flood, theft, or condemnation. a. involuntary conversion b. capital expenditure c. avoidable interest d. commercial substance e. ordinary repairs f. weighted-average accumulated expenditures g. fixed assets h. lump-sum price i. replacements j. self-constructed asset

Malch the term with the description Assets used in operations that are long-term and usually depreciated When a company constructs their own assots, such as a warehouse Used to maintain plant assets in operating condition The amount of interest cost during the penod that a company could theoretically avoid if it had not made expenditures for an asset When a comparry weights the exponditures by the arnount of time that it can incur interest cost on each one The substitution of a similat assot Monoy spent by a business or orgamzation on acyuing of maintaining foxed assets, such as land, buildings, and equipment When a company purchases a group of assets for a single price An exchange in which the fulure cash flows change as a resuat of the transaction When as asset's service is termanated through fire, flood, thoft, or a. involuntary conversion b. capital expenditure c. avoidable interest d. cornmercial substance e. ordinary repairs f. Woighted-average accumulated expenditures g. fixod assets h. lump-sum price I. replacoments 1. self-constructed asset