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;
12 Cards in this Set
- Front
- Back
|
A way to allocate the total cost paid for several long-term assets purchased together; each asset’s assigned cost is equal to the product of the total cost and the asset’s percentage of the total market value of the assets
|
Relative Fair Market Value Method
|
|
|
Rights, privileges, or benefits that result from owning long-lived assets that lack physical substance e.g., patents, trademarks, copyrights
|
Intangible Assets
|
|
|
Assets with physical substance; can be seen and touched e.g., buildings, equipment, land
|
Tangible Assets
|
|
|
Useful life is expressed as the total units of activity or production expected from an asset; the asset is written off in proportion to its activity during an accounting period
|
Depreciation Method: Activity or Units or Production
|
|
|
An equal amount of depreciation expense is recognized in each accounting period of an asset’s life
|
Depreciation Method: Straight-Line
|
|
|
The amortization of a natural resource
|
Depletion
|
|
|
Cost that is recorded as an asset at the time it is incurred
|
Capital Expenditure
|
|
|
The price at which an asset could be exchanged in the market between willing buyers and sellers
|
Market Value
|
|
|
The write-off (or expensing) of the cost of a long-term asset over multiple accounting periods; usually relates to intangible assets
|
Amortization
|
|
|
To record a cost as an asset rather than an expense
|
Capitalize
|
|
|
The difference between the proceeds from the sale of a long-term asset and the book value at the time of the sale; positive differences are gains, negative differences are losses
|
Gains and Losses
|
|
|
An accelerated method of depreciation in which depreciation expense is based on a percentage of the asset’s book value; depreciation expense is higher in the early part of an asset’s life and lower in the later part of an asset’s life
|
Depreciation Method: Double Declining Balance
|
