Chapter 3: Fixed assets Flashcards
1
Q
lump sum purchase
A
when buying multiple assets for one price - land with a building on it
2
Q
relative sales value method
A
calculating the cost price of every asset by using the share of an asset at the total market value
3
Q
deprectiation
A
long-living assets
4
Q
amortisation
A
intangibles
5
Q
depletion
A
natural resources
6
Q
impaired
A
when a company is not albe to recover the asset’s carrying amount either through using or selling it
7
Q
recoverable amount
A
the value an asset can generate in cash through use or sale
