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Unformatted text preview: Exam 3 Terms to Know Long Term Asset (PPE) – the firm’s resources which are used to continue operations over more than one year Natural Resource – long term assets such as minerals, oil reserves, timber, etc. Intangible Asset – has no physical material, like copyrights, patents, trademarks, goodwill Goodwill – calculated by using the excess of the purchase price over the sum of the fair values of all assets less its liabilities Depreciation – the process of allocating the cost of a fixed asset to expense over its service life in a systematic manner. Accumulated Depreciation – A contra asset that appears as a deduction from the related asset account in the balance sheet. Book Value – Calculated by subtracting accumulated depreciation from the cost of the asset. Capital Expenditure – expense that extends the useful life of an asset Revenue Expenditure – ordinary maintenance, repairs Depletion Expense – the process of allocating the cost of an asset to expense for natural resources...
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This note was uploaded on 01/05/2010 for the course ACCT 209 taught by Professor Stasny during the Spring '08 term at Texas A&M.
- Spring '08