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9 Cards in this Set
- Front
- Back
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What are the two major categories of long-term assets? |
Tangible and intangible assets |
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To properly report both tangible and intangible assets, what three concerns must be addressed? |
Which amounts to include in their cost
How do I expense their cost while using them
how to record their sale or disposal at the end of their useful life |
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What is the general rule for recording long term concrete assets? |
They are recorded at cost plus all expenditures necessary to get the asset ready for use. |
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What term is used to describe the recording of an expenditure as an asset. |
Capitalization. To capitalize |
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If a Company uses financing to purchase a building what do you do with the interest? |
It must be capitalized is part of the asset and asset preparation |
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What is the determining question to ask when and trying to decide to add a cost to the asset account or record it as an expense for the current period? |
Is this a cost of acquiring this asset and getting it ready for use, or is it a recurring costs and benefits the company in the crate.? |
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What is a possible concern with The recording of basket purchases? |
The fair market value of the assets purchased individually exceed the total purchase price so that's how they will be recorded in their separate accounts, The estimated fair value of the individual asset |
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What kind of intangible asset may not be recorded on the balance sheet at their estimated value? |
Intangible assets that are internally created or developed |
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How are all research and development costs recorded? |
They are expensed as they are incurred |
