Chapter 9 Vocabulary Flashcards
1
Q
fixed asset
A
long-term or relatively permanent assets such as equipment, machinery, buildings, and land
2
Q
revenue expenditures
A
costs that benefit only the current period
3
Q
capital expenditures
A
costs that improve the asset or extend its useful life
4
Q
depreciation
A
periodic recording of the cost of fixed assets as an expense
5
Q
residual value
A
scrap value, salvage value, trade-in value
6
Q
straight-line method
A
proves for the same amount of depreciation expense for each year of the asset’s useful life
7
Q
units of production method
A
provides same amount of depreciation expense for each unit of production
8
Q
double-declining-balance method
A
provides for a declining periodic expense over the expected useful life of the asset
9
Q
book value
A
cost minus accumulated depreciation
