COMMERCE 1BA3 Lecture Notes - Accelerated Depreciation, Intangible Asset, Capital Cost

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Assets that are actively used in operations to generate future benefits beyond one year. Can be classified into tangible and intangible assets. Chattels: long-lived assets (items such as chairs, tables, ovens, equipment, car) Resources that: have physical substance (a definite size and shape, are used in the operations of a business, are not intended for sale to customers. If going to resell to customer they are called inventory. Tangible assets help generate revenue but not for selling to customers. Ex. pizza oven makes pizza but do not sell, delivery truck. Also called: property, plant and equipment, fixed assets, capital assets, operational assets. Includes land, amortizable assets (building, equipment, etc. ) and natural resources (mineral deposits and timber) Except for land all tangible assets are subject to depreciation or depletion (natural resources) Rights, privileges and competitive advantages that result from ownership of long-lived assets that do not possess physical substance.

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