Term
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Definition
| Tangible and intangible resources owned by a business and used in its operations over several years |
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Term
| Tangible assets (fixed assets) |
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Definition
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Term
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Definition
| Have special rights but not physical substance |
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Definition
| The net cash equivalent amount paid or to be paid for the asset |
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Definition
| Represents interest expenditures included in the cost of a self-constructed asset |
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Term
| Ordinary repairs and maintenence |
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Definition
| Expenditures for normal operating upkeep of long-lived assets |
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Term
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Definition
| Maintain the productive capacity of the asset during the current accounting period only and are recorded as expenses |
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Term
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Definition
| Maintain the productive capacity of the asset during the current accounting period only and are recorded as expenses |
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Term
| Additions and improvements |
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Definition
| Infrequent expenditures that increase an assets economic usefulness in the future |
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Term
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Definition
| Increase the productivity life, operating efficiency, orcapacity of the asset and are recorded as increases in asset accounts, not as expenses |
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Term
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Definition
| The process of allocating the cost of buildings and equipment over their productive lives using a systematic and rational method |
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Term
| Net book (carrying) value |
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Definition
| The acquisition cost of an asset less accumulated depreciation |
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Term
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Definition
| The expected service life of an asset to the present owner |
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Term
| Residual (or salvage) value |
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Definition
| The estimated amount to be recovered at the end of the company's estimated useful life of an asset |
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Term
| Straight-Line Depreciation |
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Definition
| The method that allocates the cost of an asset in equal periodic amounts over its useful life |
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Term
| Units-of-Production depreciation |
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Definition
| A method to allocate the cost of an asset over its useful life based on the relation of its periodic output to its total estimated output |
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Term
| Declining-Balance depreciation |
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Definition
| The method that allocates the cost of an asset over its useful life based on a multiple of the straight line rate |
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Term
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Definition
| Assets that occur in nature, such as mineral deposits, timber tracts, oil, and gas |
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Term
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Definition
| The systematic and rational allocation of the cost of a natural resource over the period of exploitation |
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Term
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Definition
| The systematic and rational allocation of the acquisition cost of an intangible asset over its useful life |
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Term
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Definition
| (cost in excess of net assets acquired) The excess of the purchase price of a business over the fair market value of the business's assets and liabilities. Ex. coke |
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Term
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Definition
| An exclusive legal right to use a special name, image, or slogan |
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Term
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Definition
| The exclusive legal right to publish, use, and sell a literary, musical, or artist work |
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Term
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Definition
| Granted by the federal government for an invention; it is an exclusive right given to the owner to use, manufacture and sell the subject of the patent |
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Term
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Definition
| Costs for computer software and web development |
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Term
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Definition
| A contractual right to sell certain products of services, use certain trademarks, or perform activities in a geographical region |
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Term
| License and operating rights |
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Definition
| Obtained through agreements with governmental units or agencies, permit owners to use public property in performing their services |
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