Reversed Chapter (9) Flashcards
A depreciation method that provides for a higher depreciation amount in the first year of the asset’s use; followed by a gradually declining amount of depreciation.
accelerated depreciation method
The periodic transfer of the cost of an intangible asset to expense.
account form
The cost of a fixed asset minus accumulated depreciation on the asset.
book value
The amount a buyer owes a seller when a fixed asset is traded in on a similar asset.
boot
The costs of acquiring fixed assets; adding to a fixed asset; improving a fixed asset; or extending a fixed asset’s useful life.
capital expenditures
An exclusive right to publish and sell a literary; artistic; or musical composition.
copyright
The process of transferring the cost of natural resources to an expense account.
depletion
The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life.
depreciation
A method of depreciation that provides periodic depreciation expense based on the declining book value of a fixed asset over its estimated life.
double-declining-balance method
The number of dollars of sales that are generated from each dollar of average fixed assets during the year; computed by dividing the net sales by the average net fixed assets.
fixed asset turnover ratio
An intangible asset that is created from such favorable factors as location; product quality; reputation; and managerial skill.
goodwill
Long-term assets that are useful in the operations of a business; are not held for sale; and are without physical qualities.
intangible assets
Exclusive rights to produce and sell goods with one or more unique features.
patents
The estimated value of a fixed asset at the end of its useful life.
residual value
Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets.
revenue expenditures
A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset.
straight-line method
The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset.
trade-in allowance
A name; term; or symbol used to identify a business and its products.
trademark
A method of depreciation that provides for depreciation expense based on the expected productive capacity of a fixed asset.
units-of-output method
