Principles of Financial Accounting · free preview
Tangible and Intangible Assets
Long-term assets divide into tangible property such as land, buildings, and equipment that is depreciated, and intangibles such as patents and trademarks that may be amortized, with land standing apart as the non-depreciable exception.
1. Two families of long-term assets
Two families of long-term assets
2. Tangibles and the land exception
Tangibles and the land exception
3. Intangibles by life
Intangibles by life
4. Acquisition of either family
Acquisition of either family
5. The land exception
Why is land not depreciated? Use the figures from the worked example in this lesson and state the result in the requested units.
6. Indefinite-lived intangible
Which intangible asset is typically NOT amortized?
7. Research versus development
How are research and development costs treated differently?
8. Land improvements
A company buys land for a future warehouse and paves a parking lot on it. How are the land and the paving treated?
9. Finite intangible term
Complete the term. The systematic allocation of a finite-lived intangible asset's cost over its useful life is called ____.
10. Goodwill treatment
Goodwill from a business acquisition has which life classification, two words?
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