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Related Flashcards
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Cards In This Set
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A depreciation method that produces higher depreciation expense in the early years than the straight-line approach.
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Accelerated-Depreciation Method
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Costs incurred to increased the operating efficiency, productive capacity, or expected useful life of a plant asset.
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Additions and Improvements
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The process of allocating to expense the cost of an intangible asset.
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Amortization
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Indicates how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets.
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Asset Turnover Ratio
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Expenditures that increase the company's investment in plant assets.
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Capital Expenditures
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A contractual agreement allowing one party (the lessee) to use another party's asset (the lessor); accounted for like a debt-financed purchase by the lessee.
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Capital Lease
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An amount equal to the fair market value of the asset given up or the fair market value of the asset received, whichever is more clearly determinable.
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Cash Equivalent Price
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An exclusive right granted by the federal government allowing the owner to reproduce and sell and artistic or published work.
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Copyright
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A depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the asset's useful life.
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Declining-Balance Method
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The cost of a plant asset less its salvage value.
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Depreciable Cost
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The process of allocating to expense the cost of the plant asset over its useful life in a rational and systematic manner.
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Depreciation
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A contractual arrangement under which the franchisor grants the franchisee the right to sell certain products, to provide specific services, or to use certain trademarks or trade names, usually within a designated geographic area.
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Franchise
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The value of all favorable attributes that relate to a company that are not attributable to any other specific asset.
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Goodwill
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A permanent decline in the market value of an asset.
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Impairment
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Rights, privileges, and competitive advantages that results from the ownership of long-lived assets that do not possess physical substance.
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Intangible Assets
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