COMMERCE 1AA3 Lecture Notes - Lecture 14: Matching Principle, Pizza Delivery, Cash Flow

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Published on 21 Mar 2016
School
McMaster University
Department
Commerce
Course
COMMERCE 1AA3
Professor

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Document Summary

Assets that are actively used in operations to generate future benefits beyond one year. Can be classified into tangible and intangible assets. Resources that have a physical substance, are used in the operations of a business, and are not intended for sale to customers. Also called property, plant, and equipment; fixed assets; capital assets; and operational assets. Except for land, all tangible assets are subject to depreciation or depletion (natural resources) Intangible assets involve rights, privileges, and competitive advantages that result from ownership of long-lived assets that do not possess physical substance. Tangible assets are measured at their acquisition costs. Cost includes the cash equivalent purchase price plus all reasonable and necessary expenditures made to acquire and prepare the asset for its intended use. Before equipment is ready for its intended use, any cost is under equipment cost until it is ready in which they become expenses: interest before use: