Accounting Mod5

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  1. additions and improvements
    costs incurred that increase productivity, etc of asset.

    Value is capitalized to asset
  2. asset turnover
    net sales / average total assets
  3. Capital Cost Allowance
    amortization method required by CRA
  4. declining balance method of amortization
    constant rate used
  5. impairment loss
    loss to not book value of asset htat is not recoverable
  6. Operating Expenditures
    expenditures that only benefit the current period
  7. R&D costs
  8. return on assets
    net income / average total assets
  9. straight-line method
    divides cost of asset by estimated useful life

    typically residual is taken off the netbook value
  10. Double declining balance
    less amortization every year.

    No residual value taken off netbook value. You "fix" the final year to reach the residual value you need.
Card Set
Accounting Mod5
Accounting Mod5 Long lived assets
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