Term
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Definition
| A higher amount of depreciation recorded in the early years and a lower amount in the later years of an asset’s life that provides an income tax benefit compared to the straight-line method. |
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Term
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Definition
| The amount that includes all of the cost normally necessary to acquire an asset and prepare it for its intended use. |
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Term
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Definition
| The allocation of the original cost of an intangible asset to the periods benefited by its use. |
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Term
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Definition
| The original cost of an asset minus the amount of accumulated depreciation. |
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Term
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Definition
| A cost that improves the asset and is added to the asset account. |
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Term
| Capitalization of interest |
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Definition
| Interest on constructed assets added to the asset account as a capital expenditure. |
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Term
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Definition
| A change in the lofe of the asset of in its residual value. |
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Term
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Definition
| The recognition of an expense as a natural resource is consumed. |
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Term
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Definition
| The allocation of the original cost of a tangible asset to the periods benefited by its use. |
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Term
| Double-declining balance method |
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Definition
| An accelerated method where depreciation is recorded at twice the straight-line rate applied to the declining book value of the asset |
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Term
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Definition
| The excess of the selling price over the asset’s book value. |
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Term
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Definition
| The excess of the purchase price to acquire a business over the value of the individual net assets acquired. |
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Term
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Definition
| Long-term assets with no physical properties that often provide specific legal benefits such as patents, trademarks and copyrights. |
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Term
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Definition
| Costs that are related to land that have a limited life and are depreciated. |
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Term
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Definition
| The amount by which selling price is less than book value. |
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Term
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Definition
| Long-term assets that are consumed directly through the revenue generating process. |
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Term
| Research and development costs |
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Definition
| Costs incurred in the discovery of new knowledge that are recorded as revenue expenditures. |
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Term
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Definition
| A cost that keeps an asset in its normal operating condition and is treated as an expense. |
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Term
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Definition
| A method by which the same dollar amount of depreciation is recorded in each year of asset use. |
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Term
| Units-of-production method |
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Definition
| Depreciation or depletion determined as a function of the number of units the asset produces. |
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