Accounting Ch. 9

Front 1

CURRENT ASSETS

Back 1

(inventory, supplies) used relatively quickly

Front 2

LONG-TERM ASSETS

Back 2

(equipment, buildings) used for extended periods of time

Front 3

TANGIBLE ASSETS

Back 3

physical presence, can be seen and touched

Front 4

INTANGIBLE ASSETS

Back 4

rights or privileges

Front 5

PATENT

Back 5

exclusive legal privilege to produce & sell product

Front 6

PROPERTY, PLANT, & EQUIPMENT

Back 6

plant assets or fixed assets

Front 7

DEPRECIATION

Back 7

used to recognize expense for prop, plant, & equip (decrease in value)

Front 8

NATURAL RESOURCES

Back 8

inventories when sold recorded as CGS

Front 9

DEPLETION

Back 9

recognize expense for nat resource (to empty)

Front 10

AMORTIZATION

Back 10

recognizing expense for intangible assets with identifiable useful lives

Front 11

HISTORICAL COST CONCEPT

Back 11

requires that an asset be recorded at the amt paid for it

Front 12

BASKET PURCHASE

Back 12

acquiring a group of assets in a single transaction

Front 13

RELATIVE FAIR MARKET VALUE METHOD

Back 13

used b accountants to commonly allocate the purchase price

Front 14

STRAIGHT-LINE METHOD

Back 14

produces same amt of depreciation each accounting period

Front 15

DOUBLE-DECLINING BALANCE

Back 15

accelerated method- produces more depreciation expense in early years, declining amt in assets' later years

Front 16

UNITS-OF-PRODUCTION

Back 16

produces varying amts of depreciation in different accounting periods

Front 17

SALVAGE VALUE

Back 17

amt item is worth if 'scrapped'

Front 18

ESTIMATED USEFUL LIFE

Back 18

amt of time estimated to be used 'as-is' condition

Front 19

DEPRECIATION EXPENSE

Back 19

(asset cost - salvage value) / (useful life)

Front 20

CONTRA ASSET ACCOUNT

Back 20

used to report the reduction in assets

Front 21

ACCUMULATED DEPRECIATION

Back 21

contra asset account

Front 22

ACCELERATED DEPRECIATION METHOD

Back 22

name for double-declining-balance b/c it recognizes depreciation expense more rapidly than the straight line method does

Front 23

BOOK VALUE

Back 23

historical price - accumulated depreciation

Front 24

DEPRECIABLE COST

Back 24

historical cost - salvage value

Front 25

ANNUAL DEPRECIATION EXPENSE

Back 25

[(cost - salvage value) / (total est units of production)] x (units of production in current accounting period)

Front 26

MODIFIED ACCELERATED COST RECOVERY SYSTEM (MACRS)

Back 26

how maximum depreciation currently allowed by tax law is computed

Front 27

HALF-YEAR CONVENTION

Back 27

designed to simplify computing taxable income

Front 28

DEFERRED TAX LIABILITY

Back 28

represents the amt of taxes delayed for future payment

Front 29

CAPITAL EXPENDITURES

Back 29

substantial amts spent to improve the quality or extend the life of an asset

Front 30

TRADEMARK

Back 30

name or symbol that identifies a company or product

Front 31

COPYRIGHT

Back 31

protects intellectual property for the exclusive benefit of the creator or ppl assigned the right by the creator

Front 32

FRANCHISES

Back 32

grant exclusive rights to sell products or perform services in certain geographic areas

Front 33

GOODWILL

Back 33

value attributable to favorable factors such as reputation, location, & superior products