Card Set Information
Accounting Mod5 Long lived assets
additions and improvements
costs incurred that increase productivity, etc of asset.
Value is capitalized to asset
net sales / average total assets
Capital Cost Allowance
amortization method required by CRA
declining balance method of amortization
constant rate used
loss to not book value of asset htat is not recoverable
expenditures that only benefit the current period
return on assets
net income / average total assets
divides cost of asset by estimated useful life
typically residual is taken off the netbook value
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.