Acct. 221 1st Edition Lecture 14Outline of Last Lecture 1. Uncollectible Accountsa. Write Ofb. ReinstatementOutline of Current Lecture 2. Tangible Long Term Assets3. Intangible Assets4. Capitalize vs. Expense Current LectureInventory turnover ratePerpetual method Tangible long-term asset1. Property plant and equipment- sometimes called plant assets or fixed assets. We depreciate these assets over their useful lifea. Fixed assets = depreciation expense2. Natural Resources- mineral deposits, oil and gas reserves, timber stands, coal mines, andtradea. Natural resource3. Land- has an infinite life and is not subject to depreciationIntangible Assets1. Intangible Assets with an identifiable useful life- these intangibles include patents and copyrights. We amortize the cost of each over its useful life.These notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.2. Intangible Assets with Indefinite Useful Lives- The intangibles include renewable franchises, trademarks, and goodwill. The cost of these assets is not expenses unless it can be shown that there has been impairment in value. Capitalize vs ExpenseCapitalize it = Extends its life, adds value -maintenance and repairs are not capitalized; they are
View Full Document
Unlocking...