Accounting Ch 10 Plant Assets,Natural Resources, and Intangible Assets
Depreciation method that produces higher depreciation expense in the early years rather than in the later years
Additions and improvements
Costs incurred to increase the operating efficiency, productive efficiency, or useful life of a plant asset
The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational matter
Asset turnover ratio
A measure of how efficienly a company uses its assets to generate sales; calculated as net sales divided by average total assets
Expenditures that increase a company's investment in productive facilities.
Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work
Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset
The allocation of the cost of a natural resource to expense over its useful life in a rational and systematic manner
The cost of a plant asset minus salvage value
A contractual arrangement under which the franchisor grants the franshisee the right to sell certain products, provide specific services, or use certain trademarks or trade names, usually within a designated geographic area.
States that the company will continue in operation for the forseeable future
The value of all favorable attributes that relate to a business enterprise.
Rights, priviliages, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance
Operating rights to use public property, granted to a business enterprise by a governmental agency.
If an item would not make a difference in decision making, a company does not have to follow GAAP in reporting it.
Assets that consist of standing timber and underground deposits of oil,gas, or minerals
Expenditures to maintain the operating efficiency and productive life of a unit.
An exclusive right issued by the U.S Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant.
Tangible resources that are used in the operations of the business and are not intended for sale to customers.
R and D Costs
Expenditures that may lead to patents, copyrights, new processes, or a new products.
Expenditures that are immedietely charged against revenues as an expense.
An estimate of an asset's value at the end of its useful life
Depreciation method in which periodic depreciation is the same for each year og the asset's useful life.
A word,phrase,jingle, or symbol that identifies a particular enterprise or product.
Depreciation method in which useful life is expressed in terms of the total units of production or use expected from an asset
An estimate of the expected productive life, also called service life, of an asset