accounting ch 9

depletion

the allocation of the cost of a natural resource to expense in a rational and systematic manner over the resource's useful life.

goodwill

the value of all favorable attributes that relate to a company that is not attributable to any other specific asset

salvage value

an estimate of an asset's value at the end of its useful life

copyright

exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work.

capital expenditures

expenditures that increase the company's investment in productive facilities

amortization

the allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner

depreciation

the process of allocating the cost of an asset to expense over its useful life in a rational and systematic manner

asset overturn

a measure of how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets

useful life

An estimate of the expected productive life, also called service life, of an asset.

patent

An exclusive right issued by the U.S. Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant.

intangible assets

Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance.

franchise (license)

A contractual arrangement under which the franchisor grants the franchisee the right to sell certain products, to perform specific services, or to use certain trademarks or trade names, usually within a designated geographic area.

Trademark (trade name)

a word, phrase, jingle, or symbol that distinguishes or identifies a particular enterprise or product