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Chapter 9 Vocab - Chapter 9 Vocab 1 Accelerated...

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Chapter 9 Vocab 1) Accelerated Depreciation Method: Depreciation method that produces higher depreciation expense in the early years than in the later years. 2) Additions and Improvements: Costs incurred to increase the operating efficiency, productive capacity, or useful life of a plant asset. 3) Amortization: The allocation of the cost of an intangible asset to expense over its useful life in a systematic and rational manner. 4) Asset Turnover Ratio: A measure of how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets. 5) Capital Expenditures: Expenditures that increase the company’s investment in productive facilities. 6) Copyright: Exclusive grant from the federal government that allows the owner to reproduce and sell an artistic or published work. 7) Declining Balance Method: Depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the useful life of the asset.
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