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Unformatted text preview: Exam 3 Terms to Know Long Term Asset (PPE) the firms 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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- Spring '08