{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ch09 - CHAPTER 9 Reporting and Analyzing Long-Lived Assets...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 9 Reporting and Analyzing Long-Lived Assets CHAPTER OVERVIEW In this chapter you will learn how to account for long-lived assets, such as buildings and machinery. You will learn about the amounts at which they are recorded in the accounting records and how to allocate their cost to expense using periodic depreciation. You will learn how to dispose of plant assets and methods used by companies for evaluating their use. You will also learn about intangible assets, long-lived assets that have no physical substance. Finally, you will learn how all these assets are reported on the balance sheet. REVIEW OF SPECIFIC STUDY OBJECTIVES Plant assets are resources that have physical substance, are used in the operations of a business, and are not intended for sale to customers . Other names for these assets are property, plant, and equipment; plant and equipment; and fixed assets. Of the following four classes of these assets, land is the only which does not decline in value: 1. Land 2. Land improvements, such as driveways and parking lots 3. Buildings, such as offices and factories 4. Equipment, such as office furniture, cash registers, and delivery equipment. SO1. Describe how the cost principle applies to plant assets. ¿ Plant assets are recorded at cost , which consists of all expenditures necessary to acquire the asset and make it ready for its intended use .
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon