Koofers

Ch 7 - Flashcards

Flashcard Deck Information

Class:ACCT 2010 - Fundamentals of Acct I
Subject:ACCT Accountancy
University:University of Memphis
Term:Spring 2010
- of -
INCORRECT CORRECT
- INCORRECT     - CORRECT     - SKIPPED
Shuffle Remaining Cards Show Definitions First Take Quiz (NEW)
Hide Keyboard shortcuts
Next card
Previous card
Mark correct
Mark incorrect
Flip card
Start Over
Shuffle
      Mode:   CARDS LIST       ? pages   PRINT EXIT
Accelerated depreciation method Allocates a higher depreciation in the earlier years of the asset's life and lower depreciation in later years
Accumulated depreciation A contra-asset account representing the total depreciation taken to date
Activity-based method Allocates an asset's cost based on its use
Addition Occurs when a new major component is added to an existing asset
Generated by Koofers.com
Amortization Allocating the cost of an intangible asset over its service life
Asset turnover Net sales divided by average total assets, which measures the sales per dollar of assets invested
Big bath Recording all losses in one year to make a bad year even worse
Book value Equal to the original cost of the asset minus the current balance in accumulated depreciation
Generated by Koofers.com
Capitalize Recording an expenditure as an asset
Capitalized interest Refers to interest costs recorded as assets rather than interest expense
Copyright An exclusive right of protection given to the creatorof a published work such as a song, film, painting, photograph, book, or computer software
Declining-balance method An accelerated depreciation method that records more depreciation in earlier years and less depreciation in later years.
Generated by Koofers.com
Depletion The process of recording expense for natural resources
Depreciation Allocation the cost of a tangible asset over its service life
Franchise Local outlets that pay for the exclusive right to use the franchisor company's name and to sell its products within a specified geographical area
Goodwill The purchase price of a company less the fair value of the net assets acquired
Generated by Koofers.com
Impairment Occurs when the future cash flows generated for a long term asset fall below its book value.
Improvement The cost of replacing a major component of an asset.
Land improvements Improvements to land such as paving, lighting, and landscaping that, unlike land itself, are subject to depreciation
Materiality An item large enough to influence an investor's or creditor's decision.
Generated by Koofers.com
Natural resources Assets like oil, natural gas, and timber that we can physically use up or deplete.
Patent An exclusive right to manufacture a product or to use a process
Profit margin Net income divided by net sales; indicates the earnings per dollar of sales
Repairs and maintenance Expenses that maintain a given level of benefits in the period incurred.
Generated by Koofers.com
Residual value The amount the company expects to receive from selling the asset at the end of its service life; also referred to as salvage value
Return on assets Net income divded by average total assets; measures the amount of net income generated for each dollar invested in assets
Service life How long the company expects to receive benefits from the asset before disposing of it; also referred to as useful life
Straight-line method Allocates an equal amount of depreciation to each year of the asset's service life
Generated by Koofers.com
trademark a word, slogan, or symbol that distinctively identifies a company product or service
Generated by Koofers.com

List View: Terms & Definitions

  Hide All 29 Print
 
Front
Back
 Accelerated depreciation methodAllocates a higher depreciation in the earlier years of the asset's life and lower depreciation in later years
 Accumulated depreciation A contra-asset account representing the total depreciation taken to date
 Activity-based methodAllocates an asset's cost based on its use
 AdditionOccurs when a new major component is added to an existing asset
 AmortizationAllocating the cost of an intangible asset over its service life
 Asset turnoverNet sales divided by average total assets, which measures the sales per dollar of assets invested
 Big bathRecording all losses in one year to make a bad year even worse
 Book valueEqual to the original cost of the asset minus the current balance in accumulated depreciation
 CapitalizeRecording an expenditure as an asset
 Capitalized interestRefers to interest costs recorded as assets rather than interest expense
 CopyrightAn exclusive right of protection given to the creatorof a published work such as a song, film, painting, photograph, book, or computer software
 Declining-balance methodAn accelerated depreciation method that records more depreciation in earlier years and less depreciation in later years.
 DepletionThe process of recording expense for natural resources
 Depreciation Allocation the cost of a tangible asset over its service life
 FranchiseLocal outlets that pay for the exclusive right to use the franchisor company's name and to sell its products within a specified geographical area
 GoodwillThe purchase price of a company less the fair value of the net assets acquired
 ImpairmentOccurs when the future cash flows generated for a long term asset fall below its book value.
 ImprovementThe cost of replacing a major component of an asset.
 Land improvementsImprovements to land such as paving, lighting, and landscaping that, unlike land itself, are subject to depreciation
 MaterialityAn item large enough to influence an investor's or creditor's decision.
 Natural resourcesAssets like oil, natural gas, and timber that we can physically use up or deplete.
 PatentAn exclusive right to manufacture a product or to use a process
 Profit margin Net income divided by net sales; indicates the earnings per dollar of sales
 Repairs and maintenanceExpenses that maintain a given level of benefits in the period incurred.
 Residual valueThe amount the company expects to receive from selling the asset at the end of its service life; also referred to as salvage value
 Return on assetsNet income divded by average total assets; measures the amount of net income generated for each dollar invested in assets
 Service life How long the company expects to receive benefits from the asset before disposing of it; also referred to as useful life
 Straight-line methodAllocates an equal amount of depreciation to each year of the asset's service life
 trademark a word, slogan, or symbol that distinctively identifies a company product or service
36, "/var/app/current/tmp/"