Financial_Accounting_7e_Ch09 - JWCL165_c09_396-443.qxd 9:39 PM Page 396 9 Plant Assets Natural Resources and Intangible Assets Chapter STUDY OBJECTIVES

Financial_Accounting_7e_Ch09 - JWCL165_c09_396-443.qxd 9:39...

  • Notes
  • nataliasalaskina
  • 48
  • 56% (16) 9 out of 16 people found this document helpful

This preview shows page 1 - 3 out of 48 pages.

396Chapter Plant Assets, NaturalResources, andIntangible AssetsAfter studying this chapter, you should beable to:1Describe how the cost principle appliesto plant assets.2Explain the concept of depreciation.3Compute periodic depreciation usingdifferent methods.4Describe the procedure for revisingperiodic depreciation.5Distinguish between revenue andcapital expenditures, and explain theentries for each.6Explain how to account for the disposalof a plant asset.7Compute periodic depletion of naturalresources.8Explain the basic issues related toaccounting for intangible assets.9Indicate how plant assets, naturalresources, and intangible assets arereported.S T U D Y O B J E C T I V E SFeature StoryThe Navigator9HOW MUCH FOR A RIDE TO THE BEACH?It’s spring break. Your plane has landed, you’ve finally found your bags, andyou’re dying to hit the beach—but first you need a “vehicular unit” to getScan Study ObjectivesRead Feature StoryRead PreviewRead text and answer p. 402p. 409p. 412p. 417Work Comprehensive p. 421p. 422Review Summary of Study ObjectivesAnswer Self-Study QuestionsCompleteAssignmentsThe NavigatorDo it!Do it!JWCL165_c09_396-443.qxd 8/4/09 9:39 PM Page 396
Background image
397you there. As you turnaway from baggage claimyou see a long row ofrental agency booths.Many are names you arefamiliar with—Hertz, Avis,and Budget. But a boothat the far end catches youreye—Rent-A-Wreck().Now there’s a companymaking a clear statement!Any company that relieson equipment to generaterevenues must make decisions about what kind of equipment to buy, howlong to keep it, and how vigorously to maintain it. Rent-A-Wreck has decidedto rent used rather than new cars and trucks. It rents these vehicles acrossthe United States, Europe, and Asia. While the big-name agencies push vehicles with that “new car smell,” Rent-A-Wreck competes on price. Themessage is simple: Rent a used car and save some cash. It’s not a messagethat appeals to everyone. If you’re a marketing executive wanting to impressa big client, you probably don’t want to pull up in a Rent-A-Wreck car. But ifyou want to get from point A to point B for the minimum cash per mile, thenthey are playing your tune. The company’s message seems to be gettingacross to the right clientele. Revenues have increased significantly.When you rent a car from Rent-A-Wreck, you are renting from an independ-ent business person who has paid a “franchise fee” for the right to use theRent-A-Wreck name. In order to gain a franchise, he or she must meet finan-cial and other criteria, and must agree to run the rental agency according torules prescribed by Rent-A-Wreck. Some of these rules require that each fran-chise maintain its cars in a reasonable fashion. This ensures that, though youwon’t be cruising down Daytona Beach’s Atlantic Avenue in a Mercedes con-vertible, you can be reasonably assured that you won’t be calling a towtruck.
Background image
Image of page 3

You've reached the end of your free preview.

Want to read all 48 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes