Accounting Chapter 7 Terms

Accounting Chapter 7 Terms - Chapter 7 Terms Amortization-...

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Chapter 7 Terms Amortization- The Process of spreading out the cost of an intangible asset over its useful life Average Age of Fixed Assets- The number of years, on average, that the company has used its fixed assets. Calculation= Accumulated Depreciation / Depreciation Expense Average Useful Life of Fixed Assets- The number of years, on average, that the company expects to use the fixed asset. Calculation- Cost of Fixed Asset / Depreciation Expense Capital Expenditure- An expenditure that increases that expected useful life or productivity of the asset Copyright- The right to produce or sell an artistic or published work Depreciation- The process of systematically or rationally allocating the cost a of fixed asset Depreciation Expense- The amount of a fixed asset that is used up or consumed in the current period. Double Declining Balance Method- Depreciation method results in more depreciation expense in the early years of an asset’s life and less depreciation expense in the later years of an asset’s life. Fixed Asset-
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Accounting Chapter 7 Terms - Chapter 7 Terms Amortization-...

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