Term
| Accelerated-depreciation method |
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Definition
| A depreciation method that produces higher depreciation expense in the early years than the straight-line approach. |
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Term
| Additions and improvements |
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Definition
| Costs incurred to increase the operating efficiency, productive capacity, or expected useful life of a plant asset. |
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Definition
| The process of allocating to expense the cost of an intangible asset. |
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Definition
| Indicates how efficiently a company uses its assets to generate sales; calculated as net sales divided by average total assets. |
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Definition
| Expenditures that increase the company's investment in plant assets. |
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Definition
| A contractual agreement allowing one party (the lessee) to use another party's asset (the lessor); accounted for like a debt-financed purchase by the lessee. |
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Definition
| An amount equal to the fair value of the asset given up or the fair value of the asset received, whichever is more clearly determinable. |
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Definition
| An exclusive right granted by the federal government allowing the owner to reproduce and sell an artistic or published work. |
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Definition
| A depreciation method that applies a constant rate to the declining book value of the asset and produces a decreasing annual depreciation expense over the asset's useful life. |
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Definition
| The cost of a plant asset less its salvage value. |
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Definition
| The process of allocating to expense the cost of a plant asset over its useful life in a rational and systematic manner. |
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Definition
| A contractual arrangement under which the franchisor grants the franchisee the right to sell certain products, to perform specific services, or to use certain trademarks or trade names, usually within a designated geographic area. |
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Definition
| The value of all favorable attributes that relate to a company that are not attributable to any other specific asset. |
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Definition
| A permanent decline in the fair value of an asset. |
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Definition
| Rights, privileges, and competitive advantages that result from the ownership of long-lived assets that do not possess physical substance. |
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Definition
| A party that has made contractual arrangements to use another party's asset for a period at an agreed price. |
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Definition
| A party that has agreed contractually to let another party use its asset for a period at an agreed price. |
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Definition
| A contractual agreement allowing one party (the lessee) to use the asset of another party (the lessor); accounted for as a rental by the lessee. |
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Definition
| Expenditures to maintain the operating efficiency and expected productive life of the asset. |
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Definition
| An exclusive right issued by the U.S. Patent Office that enables the recipient to manufacture, sell, or otherwise control an invention for a period of 20 years from the date of the grant. |
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Definition
| Resources that have physical substance, are used in the operations of the business, and are not intended for sale to customers. |
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Term
| Research and development costs |
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Definition
| Expenditures that may lead to patents, copyrights, new processes, and new products; must be expensed as incurred. |
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Term
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Definition
| A profitability measure that indicates the amount of net income generated by each dollar of assets; computed as net income divided by average assets. |
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Definition
| Expenditures that are immediately charged against revenues as an expense. |
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Definition
| A method in which companies expense an equal amount of depreciation for each year of the asset's useful life. |
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Definition
| A word, phrase, jingle, or symbol that distinguishes or identifies a particular enterprise or product. |
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Definition
| A depreciation method in which useful life is expressed in terms of the total units of production or use expected from the asset. |
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