1.
Betterment: An expenditure that improves a fixed asset's operating efficiency for the remainder of its useful life.
2.
Capitol expenditures: The cost of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed assets useful life.
3.
Depreciation: When a fixed asset gets transferred to an expense account after it loses its value.
4.
Extraordinary repair: An expenditure that increases the useful life of an asset beyond its original estimate.
5.
Fixed assets: long term or relatively permanent tangible assets. They are used by the business or company and are not sold to customers.
6.
Functional depreciation: when a fixed asset can no longer provide the service that it is intended to do.
7.
Physical depreciation: occurs from wear and tear while in use.
8.
Residual value: the estimated value at the end of a fixed asset's useful life.
9.
Straight line method: (original cost-residual value) / estimated life in years`
10.
The adjusting entry used to record depreciation...: debit to depreciation expense and credit to accumulated depreciation.
11.
Three factors in determining the amount of depreciation expense to be recognized each period.: -the fixed asset's initial cost.
-it's expected useful life
-it's estimated value at the end of its useful life.
