ACC 110 Lecture Notes - Lecture 3: Intangible Asset, Financial Statement, Alliteration
12 Apr 2016
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Abstraction is appropriate depending on the industry. Since the business name will be used as the domain name on the internet (preferably using . com) it should not be lengthy. Research domain name registration companies to ensure the availability of the domains. Long-lived assets: an asset that will last over the long term. Tangible assets: physical assets (i. e. land and buildings). Intangible assets: non-physical assets (i. e. legal rights such as licenses, trademarks, or brand names). Technology assets: long-lived intangible asset (i. e. company website). Accounts: common subgroups of financial reporting elements that are used to accumulate business activities. Event: a business activity of importance to the business. If the event is measurable (it has a dollar value) and realized (the exchange already happened), then it is recorded in the accounting system as a transaction. Pay before using it, for example rent, advertising, and insurance. Business license: long-term asset account recording license costs.
