MSOM 300 Lecture Notes - Lecture 6: Office Supplies, Dont, Title Search

• School: George Mason University
• Department: Business, Minor in
• Course: MSOM 300
• Professor: Reza Rafi

Document Summary

Chapter 6: accouning for long term operaion assets. When you buy an asset, you have to record it at cost (the price you paid for it plus shipping and delivery and installaion) buying it and using it for its intended use. Depreciaion is the amount that an item goes down. Intangible asset: you can"t physically touch, patent, copy rights, trade marks, franchise amortization. Natural resources: mineral deposits, oil and gas reserves, imber stands, coal mines, and stone quarries. We deplete these assets over their useful life. Land: has an ininite life and is not subject to depreciaion. Ideniiable useful life: patents and copyrights that have a known length of life. Indeinite useful lives: renewable franchises, trademarks, and goodwill (what a business is worth in addiion to current assets they give you). The cost of these assets not expensed unless it can be shown there has been an impairment in value: building.