Reading...
Play button
Play button
Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
19 Cards in this Set
- Front
- Back
|
Plant Assets
|
Long-lived tangible assets, such as land, buildings, and equipment, used to operate a business
|
|
|
Intangibles
|
Assets with no physical form. Valuable because of the special rights they carry. Examples are patents and copyrights.
|
|
|
Capital Expenditures
|
Expenditure that increases the capacity or efficiency of an asset or extends its useful life. Capital expenditures are debited to an asset account.
|
|
|
Extraordinary Repairs
|
Repair work that generates a capital expenditure.
|
|
|
Ordinary Repair
|
Repair work that is debited to an expense account.
|
|
|
Estimated Useful life
|
length of the service period expected from an asset. May be expressed in years, unites of output, miles, or another measure.
|
|
|
Estimated Residual Value
|
Expected cash value of an asset at the end of its useful life. Also called salvage value.
|
|
|
Depreciable Cost
|
The cost of a plant asset minus its estimated residual value.
|
|
|
Straight-Line Depreciation Method
|
Depreciation method in which an equal amount of depreciation expense is assigned to each year of asset use.
|
|
|
Units-of-Production Depreciation Method
|
Depreciation method by which a fixed amount of depreciation is assigned to each unit of output produced by an asset.
|
|
|
Accelerated Depreciation Method
|
A depreciation method that writes off more of the asset's cost near the start of its useful life than the straight-line method does.
|
|
|
Double-Declining-Balance Depreciation Method
|
An accelerated depreciation method that computes annual depreciation by multiplying the asset's decreasing book value by a constant percent that is two times the straight-line rate.
|
|
|
Depletion Expense
|
Portion of an natural resource's cost used up in a particular period. Computed in the same way as units-of-production depreciation.
|
|
|
Amortization
|
Systematic reduction of the asset's carrying value on the books. Expense that applies to intangibles in the same way depreciation applies to plant assets and depletion to natural resources
|
|
|
Patent
|
A federal government grant giving the holder the exclusive right to produce and sell an invention for 20 years.
|
|
|
Copyright
|
Exclusive right to reproduce and sell a book, musical composition, film, other work of art, or computer program. issued by the federal government copyrights extend 70 years beyond the author's life.
|
|
|
Trademarks, Trade Names, or Brand Names
|
Assets that represent distinctive identifications of a product or service.
|
|
|
Franchises, Licenses
|
Privileges granted by a private business or a government to sell a product or service under specified conditions.
|
|
|
Goodwill
|
Excess of the cost of an acquired company over the sum of the values of its net assets (assets minus liabilities).
|
