Acc 3313 Exam 4

Front 1

Additions

Back 1

Expenditures on assets which increase or extend them

Front 2

Capital expenditure

Back 2

expenditure on an asset whereby:
1. the useful life of the asset is increased.
2. the quantity of units produced form the asset is increased, or
3. the quality of the units produced is enhanced

Front 3

Capitalization period

Back 3

period of time during which interest must be capitalized. it begins when
1. expenditures for the asset have been made,
2. activities that are necessary to get the asset ready for its intended use are in progress, and
3. interest cost is being incurred. The time ends when the asset is substantially complete and ready for its intended use.

Front 4

Historical cost

Back 4

the value of an asset measured by the cash or cash equivalent price of obtaining the asset and bringing it to the location and condition necessary for its intended use.

Front 5

Improvements

Back 5

Expenditures that substitute a better asset for an existing one

Front 6

Involuntary conversion

Back 6

An asset's service is terminated through fire, flood, theft, condemnation or some other manner not intended buy the owner of the asset

Front 7

Lump sum price

Back 7

the aggregate price at which a group of assets is acquired

Front 8

Major repairs

Back 8

Expenditures made to maintain plant assets whereby the expenditures benefit more than one year or one operating cycle, whichever is longer.

Front 9

Nonmonetary assets

Back 9

Assets whose price in terms of the monetary unit may chance over time, whereas monetary assets--cash or short-or-long-term accounts and notes receivable--are fixed in terms of units of currency by contract or otherwise.

Front 10

Nonreciprocal transfers

Back 10

Transfer of assets in one direction such as contributions (donations or gifts)

Front 11

Ordinary repairs

Back 11

Expenditures made to maintain plant assets in operating condition.

Front 12

Property, plant, and equipment

Back 12

Assets that
1. are acquired for use in operations and not for resale,
2. are long-term in nature and usually subject to depreciation, and
3. possess physical substance

Front 13

Rearrangement and reinstallation costs

Back 13

Expenditures intended to benefit future periods that result from rearranging or reinstalling assets

Front 14

Replacements

Back 14

Expenditures that substitute a similar asset for an existing asset

Front 15

Revenue (expense) expenditure

Back 15

An expenditure on an asset whereby
1. the useful life of the asset does not increase,
2. the quantitiy of units produced from the asset does not increase, and
3. the quality of the units produced is not enhanced.

Front 16

Self-constructed assets

Back 16

Assets constructed by a company rather than purchased

Front 17

Weighted-average accumulated expenditures

Back 17

The construction of expenditures that are weighted by the amount of time that interest cost could be incurred on the expenditure