accounting chapter 9
Capital expenditures
Costs that are not expensed immediately but are instead included in a plant asset account.
Betterments/Improvements
Expenditures making a plant asset more efficient or productive. They do not always inc. an asset's life. They are capital expenditures. Treated as asset.
Ordinary repairs
Expenditures to keep an asset in normal operating condition. They are necessary if an asset it to perform to expectations over its useful life. They are treated as expenses.
Copyright
Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years.
Expenditures
Money that is spent on long term assets.
Impairment
Permanent decline in the value of PPE.
Goodwill
Represents the value of all favorable attributes that relate to a company that are not attributable to any other specific asset. Can only be identified with the business as a whole. It is not amortized, but is tested annually for impairment.
Depletion
The process of allocating the cost of natural resources to periods in which they are consumed.
Amortization
The systematic allocation of the cost of an intangible asset to expense over its estimated useful life. Declining in intangible assets.