Flashcards in Reversed Chapter (9) Deck (19):
A depreciation method that provides for a higher depreciation amount in the first year of the asset’s use; followed by a gradually declining amount of depreciation.
accelerated depreciation method
The periodic transfer of the cost of an intangible asset to expense.
The cost of a fixed asset minus accumulated depreciation on the asset.
The amount a buyer owes a seller when a fixed asset is traded in on a similar asset.
The costs of acquiring fixed assets; adding to a fixed asset; improving a fixed asset; or extending a fixed asset’s useful life.
An exclusive right to publish and sell a literary; artistic; or musical composition.
The process of transferring the cost of natural resources to an expense account.
The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.
A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.
The number of dollars of sales that are generated from each dollar of average fixed assets during the year; computed by dividing the net sales by the average net fixed assets.
fixed asset turnover ratio
An intangible asset that is created from such favorable factors as location; product quality; reputation; and managerial skill.
Long-term assets that are useful in the operations of a business; are not held for sale; and are without physical qualities.
Exclusive rights to produce and sell goods with one or more unique features.
The estimated value of a fixed asset at the end of its useful life.
Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets.
A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.
The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.
A name; term; or symbol used to identify a business and its products.