Accounting Chapter 7 - Operating Assets

The total amount of the depreciation expense that has been recorded for an asset since the asset was acquired.

The process of systematically allocating the cost of intangible operating assets as an expense among the accounting periods.

By dividing accumulated depreciation by depreciation expense.

<p>The value of an asset or liability as it appears on the balance sheet.</p> Signup and view all the answers

<p>An intangible asset that grants the holder the right to publish, sell, or control a literary or artistic work.</p> Signup and view all the answers

<p>The amount of cash or cash equivalent sacrificed for goods and/or services expected to bring benefit.</p> Signup and view all the answers

<p>An accelerated depreciation method that produces a declining amount of depreciation expense each period.</p> Signup and view all the answers

<p>The process of allocating the cost of a natural resource to each period in which the resource is removed from the Earth.</p> Signup and view all the answers

<p>Depreciable cost is calculated as the cost of the asset less its residual (or salvage) value.</p> Signup and view all the answers

<p>The amount of depreciation recorded on the income statement.</p> Signup and view all the answers

<p>A ratio that indicates how efficiently a company uses its fixed assets.</p> Signup and view all the answers

<p>An exclusive right to conduct a certain type of business in a specific geographic region.</p> Signup and view all the answers

<p>An unidentifiable intangible asset that arises from factors such as customer satisfaction and quality products.</p> Signup and view all the answers

<p>A permanent decline in the future benefits or service potential of an asset.</p> Signup and view all the answers

<p>Assets that provide a benefit to a company over years but lack physical substance.</p> Signup and view all the answers

<p>A type of disposal that occurs when assets are lost or destroyed through theft or acts of nature.</p> Signup and view all the answers

<p>Resources that are physically consumed as they are used by a company.</p> Signup and view all the answers

<p>Assets used to generate operating income, including cash, inventories, and property.</p> Signup and view all the answers

<p>Significant costs such as legal fees and promotion fees that a company incurs when formed.</p> Signup and view all the answers

<p>A type of intangible asset that grants the holder the right to manufacture, sell, or use a product.</p> Signup and view all the answers

<p>Tangible, long-lived, productive assets used by a company to produce revenue.</p> Signup and view all the answers

<p>The cost of internal development of intangible assets that is expensed as incurred.</p> Signup and view all the answers

<p>The amount of cash or trade-in consideration expected to be received when an asset is retired from service.</p> Signup and view all the answers