Term
| Property-Plant-Equipment (P-P-E) |
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Definition
| Long-term assets that have a physical substance |
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Term
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Definition
| Cost is the purchase price plus all costs incurred in getting the asset ready for use. |
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Term
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Definition
All of these costs incurred in getting the asset
ready for use are recorded on the balance sheet
as part of the cost of the asset (i.e., as part of
the land, building or equipment) |
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Term
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Definition
| is when a company purchases more than one asset for one, lump-sum amount |
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Term
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Definition
| systematic allocation of the cost of a plant asset (buildings and equipment) to expense over its useful life. |
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Term
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Definition
| Cost of Asset - Accumulated Depreciation |
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Term
| 4 Common Depreciation Methods |
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Definition
1. Straight-Line
2. Sum-of-the-Years’-Digits
3. Double-Declining Balance
4. Units of Production |
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Term
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Definition
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Term
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Definition
is based on estimates
estimated salvage (residual) value
estimated useful life |
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Term
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Definition
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Term
| 4 Time Value of Money Cases |
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Definition
1. Future Value of a Lump Sum
2. Present Value of a Lump Sum
3. Future Value of an Annuity
4. Present Value of an Annuity |
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Term
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Definition
the frequency with which interest
is added to the principal |
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Term
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Definition
| = Future Value x Present Value Factor |
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Term
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Definition
Figuring out how much a future amount is worth
TODAY |
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Term
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Definition
The previous time value of money examples
had a single payment. |
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Term
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Definition
a series of equal payments (either amounts
to be received or paid) with each payment
having the same time interval between them |
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Term
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Definition
| Payment x Future Value Annuity Factor |
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