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;
17 Cards in this Set
- Front
- Back
|
Acquisition Cost
|
The amount that includes all of the cost normally necessary to acquire an asset and prepare it for its intended use.
-Also known as historical cost of original cost |
|
|
Capitalization Of Interest
|
Interest on constructed assets is added to the asset account.
|
|
|
Land Improvements
|
Costs that are related to land but that have a limited life.
|
|
|
Depreciation
|
The allocation of the original cost of an asset to the periods benefited by its use.
|
|
|
Straight-Line Method
|
A method by which the same dollar amount of depreciation is reduced in each year of asset use.
|
|
|
Book Value
|
The original cost of an asset minus the amount of accumulated depreciation.
|
|
|
Units-Of-Production Method
|
Depreciation is determined as a function of the number of units the asset produces.
|
|
|
Accelerated Depreciation
|
A higher amount of depreciation is recorded in the early years and a lower amount in the later years.
|
|
|
Double-Declining-Balance Method
|
Depreciation is recorded at twice the straight-line rate, but the balance is reduced each period.
|
|
|
Change In Estimate
|
A change in the life of the asset or in its residual value.
|
|
|
Capital Expenditure
|
A cost that improves the asset and is added to the asset account.
-Also known as item treated as asset |
|
|
Revenue Expenditure
|
A cost that keeps an asset in its normal operating condition and is tread as an expense.
-Also known as item treated as an expense of the period |
|
|
Gain On Sale Of Asset
|
The excess of the selling price over the asset's book value.
|
|
|
Loss On Sale Of Asset
|
The amount by which selling price is less than book value.
|
|
|
Intangible Assets
|
Assets with no physical properties.
|
|
|
Goodwill
|
The excess of the purchase price to acquire a business over the value of the individual net assets acquired.
-Also known as purchase price in excess of the market value of the assets |
|
|
Research And Development Costs
|
Costs incurred in the discovery of new knowledge.
|
