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  1. Accelerated Deprreciation
    Larger amounts of depreciation are recorded during the early years of an assets use and decreasing amounts in later years
  2. Accumulated Depreciation
    Contra asset account that accumulates the depreciation of an asset
  3. Amortization
    Process of allocating the cost of an intagible to an expense over its useful life
  4. Book Value
    Cost of an asset minus the the accumulated depreciation. (carrying value)
  5. Buildings
    Asset account, includes warehouses, offices and retail stores
  6. Capital Expenditures
    COsts incurred for the purchase of property, equipment, cost of increasing the capacity or quality of assets.
  7. Copyright
    Exclusive rights of protection granted to creators
  8. Depreciation
    Process of allocationg cost of an asset to an expense over its useful life
  9. Depreciation Base
    Total cost of an asset less its salvage or trade-in value
  10. Double-Decining Balance Method
    An accelerated method of depreciation; book value at the beginning of the year multiplied by twice the stragiht-line rate
  11. Equipment
    An asset account
  12. Extraordinary-repairs expenditures
    Cost incurred for major overhauls or reconditioning of assets; repairs that either significantly prolong the life of an asset or increase its estimated salvage value
  13. Fixed Assets
    Assets that are purchased for use in the business and have a useful life longer than one year
  14. Franchise
    An exclusive right to use a company's name and to sell its products
  15. Gain on Disposal of Property and Equipment
    Amount in excess of the book value
  16. Goodwill
    Represents the value of the business over its identified assets
  17. Intagible Assets
    Assets that are purchased for use in the business and have a useful life longer than one year but have no physical substance
  18. Land
    An asset account that includes property that is used in the operations of a business
  19. Land Improvements
    An asset account covering expenditures for improvements that are (1) not as permanent as the land or (2) not directly associated with a building. (driveways, parking lots, landscaping,fences, and outdoor lightning systems)
  20. Leasehold Improvements
    An asset account used to record improvements to rented property that are maid or paid by the lessee (renter or tenant) but become the property of the lessor (owner or landlord) at the end of the lease term
  21. Loss on Disposal of Property and Equipment
    Receives an amount less than the book value
  22. Modified Accelerated Cost Recovery System (MACRS)
    An accelerated method of depreciation that is used to determine allowable depreciation for federal income tax return based on property acquired after 1986; assets are divided into eight classes
  23. Patent
    Exclusive right to sell or produce an invention
  24. Revenue Expenditures
    Costs incurred to maintain the operation of assets, such as normal repair expenses and fuel expenses
  25. Salvage Value
    The expected value of the asset at disposable; sometimes called trade-in value or residual value
  26. Straight-line Method
    A method of depreciations that assigns equal amounts of depreciation to each year of the assets depreciable life. (Cost minus salvage value divided by useful life [in years].)
  27. Trademark
    Represents a word, slogas or symbol that identifies a company or product
  28. Units-of-production Method
    A method of depreciation that allocates ab assets costs based on its usage or productivity within the period. (cost minus salvage value divided by estimated life in units salvage value divided by estimated life in units of pruction multiplied by the number of units produced)
  29. Useful Life
    The lenght of time an asset is expected to be used
  30. Co-owneership
    A situation in which each party owns a fractional share of all of the assets
  31. Dissolution
    The ending of a partnership because of a change in personnel and the forming of a new partnership. The transition results primarily in changes to the Capital accounts, with routine business being carried on as usual
  32. Distributive Share
    The sahre of a net income (net loss) allocated to each partner
  33. General Partnership (GP)
    An association of two or more persons to carry on, as co-owners, a business for profit. The partners are general partners who actively and publicly participate in the transactions of the firm and have unlimited liabilty
  34. Limited Liability Partnership (LLP)
    An organization similar to a limited partnership except that all partners may take an active role in the business of the partnership with only their invested capital at risk
  35. Limited Partnership
    A partnership with at least one GP and one LP. The GP normally manages the partnership and the LP or partners have the largest share of invested of invested capital and usually cannot lose more than their capital contribution
  36. Liquidation
    The ending of a partnership, involving the sale of the assets, payment of the liabilities, and distribution of the remaining cash to the partners
  37. Mutual Agency
    The ability of each partner to act as an agent of the firm, thereby committing the entire firm to a binding contract
  38. Partnership
    An association of two or more persons who carry on, as co-owners, a business for profit
  39. Partnership Agreement
    A written contract that details the provisions of a partnership
  40. Realization
    Conversion into cash, as happens in the case of the sale of assets
Card Set:
2012-03-25 19:11:54
accounting 17 18

accounting 17 and 18
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