long-term permanent assets
The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset's useful life.
cost that benefit only the current period
ordinary maintenance and repairs
costs related to the ordinary maintenance and repairs of a fixed asset are recorded as an expense of the current period.
accelerated depreciation method
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.
Leases that include one or more provisions that result in treating the leased assets as purchased assets in the accounts.
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.
fixed asset turnover ratio
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.
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.
Leases that do not meet the criteria for capital leases and thus are accounted for as operating expenses.
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
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.
A method of depreciation that provides for depreciation expense based on the expected productive capacity of a fixed asset.
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.