Upgrade to remove ads
Depreciation & Uncollectible Accounts Terms
Terms in this set (24)
The value of an asset determined by tax authorities for the purpose of calculating taxes.
book value of a plant asset
The original cost of a plant asset minus accumulated depreciation.
Cash and other assets expected to be exchanged for cash or consumed within a year.
A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.
The decrease in the value of a plant asset because of the removal of a natural resource.
gain on plant asset
revenue that results when a plant asset is sold for more than book value.
A method that recognizes one half of a year's depreciation in the year of acquisition.
loss on plant asset
the loss that results when a plant asset is sold for less than book value.
The tax rate used to calculate property taxes.
Modified Accelerated Cost Recovery System (MACRS)
A depreciation method required by the Internal Revenue Service to be used for income tax calculation purposes for most plant assets.
modified half-year convention
A method that recognizes a full year's depreciation if the asset is acquired in the first half of the year.
All property not classified as real property.
plant asset record
An accounting form on which a business records information about each plant asset.
Land and anything attached to it; also called real estate.
The amount that will be received for an asset at the time of its disposal.
Recording an equal amount of depreciation expense for a plant asset in each year of its useful life.
Calculating the estimated annual depreciation expense based on the amount of production expected from a plant asset.
accounts receivable turnover ratio
The number of times the average amount of accounts receivable is collected during a specified period.
aging accounts receivable
Analyzing accounts receivable according to when they are due
Crediting the estimated value of uncollectible accounts to a contra account
The difference between an asset's account balance and its related contra account balance
direct write-off method
Recording uncollectible accounts expense only when an amount is actually known to be uncollectible.
Accounts receivable that cannot be collected.
writing off an account
Canceling the balance of a customer because the customer is not expected to pay.
Recommended textbook explanations
Cambridge IGCSE Business Studies
Karen Borrington, Peter Stimpson
Principles of Economics
William A. McEachern
Explorations in Economics
This set is often in folders with...
Accounting Chapter 13
Accounting I - Chapter 12
Accounting Chapter 14 vocab
Chapter 1 - Advanced Accounting
You might also like...
Accounting 3 Chapter 7 Review
Accounting 3: Chapter 8
Chapter 14 Accounting Terms
Other sets by this creator
TCE September Review
Accounting I Terms Final
Accounting II Terms Final
Accounting GAAP (Generally Accepted Accounting Pri…