11. The total depreciation expense over an asset's useful life will be identical across all methods of depreciation.
12. Most companies use accelerated depreciation for tax purposes as it reduces taxable income due to higher depreciation expense in the early years of an asset's life.
13. Decision makers and other users of financial statements are especially interested in evaluating a company's ability to use its assets in generating sales.
14. Coors reported net sales of $2,463 million and average total assets of $1,546 million. Its total asset turnover is equal to 1.59.
15. An asset’s cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use.
16. The purchase of a property that included land, building, and improvements is called a lump-sum purchase.
17. When a company constructs a building, the cost of the building includes materials and labor, design fees, building permits, and insurance during construction.
18. The most frequently used method of depreciation is the straight-line method.
19. Total asset cost plus depreciation expense equals book value.
20. The units-of-production method of depreciation charges a varying amount of expense for each period of an asset's useful life depending on its usage.