Tangible Assets

Other Terms

Review Potpourri

$100 $100 $100

$200 $200 $200

$300 $300 $300

$400 $400 $400

$500

Amortization

$400

$100

$200

$300

$500

Intangible Assets

$100

$200

$300

$400

$500 $500 $500

Tangible Assets - $100

Physical assets owned by the company that will provide economic benefits beyond the upcoming fiscal year.

What are Long-lived Tangible Assets?

Back to Board

Tangible Assets - $200

Because long-lived tangible assets have economic benefits beyond the current period the cost of acquiring them is initially ______.

What is Capitalized?

Back to Board

Tangible Assets - $300

The principle that requires all reasonable and necessary costs of acquiring and preparing an asset for use should be recorded as a cost of the asset.

What is the “cost principle”?

Back to Board

Tangible Assets - $400

Expenditures for routine operating upkeep of long-lived assets are recorded in this manner.

What is “as Expenses”?

Back to Board

Tangible Assets - $500

Extraordinary repairs are accounted for in this manner.

What is capitalized (i.e., recorded as increases in the asset accounts)?

Back to Board

Intangible Assets - $100

A right to exclude others from making, using, selling, or importing an invention.

What is a Patent?

Back to Board

Intangible Assets - $200

The limited permission to use property according to specific terms and conditions set out in a contract.

What are Licensing rights?

Back to Board

Intangible Assets - $300

Name given to the allocation of the costs of intangible assets over their limited useful lives.

What is Amortization?

Back to Board

Intangible Assets - $400

The accounts affected when $10,000 of amortization is recorded against a company’s patent.

What are Amortization Expense and Patent?

Back to Board

Intangible Assets - $500

Purchase price of the corporation less the fair market value of identifiable assets (net of liabilities).

What is Goodwill?

Back to Board

Amortization - $100

The allocation of the cost of long-lived tangible assets over their productive lives.

What is Amortization?

Back to Board

Amortization - $200

Acquisition cost of an asset less accumulated amortization.

What is Book (or Carrying) Value?

Back to Board

Amortization - $300

DAILY DOUBLE!!!

Amortization - $400

Allocates the cost of an asset over its useful life based on a multiple of the straight-line rate.

What is Declining-Balance?

Back to Board

Amortization - $500

(Cost – Residual Value) x Actual Production Est. Total Production

What is the formula for calculating amortization expense under the Units-of-Production method?

Back to Board

Other Terms - $100

EBITDA is the abbreviation commonly used to mean this.

What is “earnings before interest, taxes, depreciation, and amortization”?

Back to Board

Other Terms - $200

A contractual right to sell certain products or services, use certain trademarks, or perform activities in a geographical region.

What is a Franchise?

Back to Board

Other Terms - $300

Net Sales Revenue divided by Average Net Fixed Assets.

What is the Fixed Asset Turnover Ratio?

Back to Board

Other Terms - $400

Method of amortization that allocates the cost of an asset in equal periodic amounts over its useful life.

What is Straight-line amortization?

Back to Board

Other Terms - $500

(Cost – Accumulated Amort.) x 2 Useful Life

What is the formula for Amortization Expense under the Double-Declining-Balance method?

Back to Board

Review Potpourri - $100

Back to Board

These accounts are affected when $3,000 of cash is received for $1,500 of interest earned this period and $1,500 earned in a previous period.

What are cash (increased, debited),interest revenue (increased, credited) and interest receivable (decreased, credited)?

Review Potpourri - $200

Back to Board

Accounts affected when money is loaned out and a Note Receivable is established.

What are Note Receivable (increase, debited) and Cash (decrease, credited)?

Review Potpourri - $300

Back to Board

Determines how many times the process of selling and collecting on account occurs during the period, on average.

What is the Receivables Turnover Ratio?

Review Potpourri - $400

Back to Board

The term that refers to selling accounts receivable to a collections company.

What is “factoring”?

Review Potpourri - $500

Back to Board

The accounts affected when an account receivable is determined to be uncollectible and is written off.

What are Allowance for Doubtful Accounts (decreased, debited), and Accounts Receivable (decreased, credited)?

Daily Double Specify Your Wager!

amortization ---

The term that refers to the portion of an asset’s cost that will be used up when generating revenue.

Back to Board

What is Depreciable Cost (cost less residual value)?