[ADMN 2021H] - Midterm Exam Guide - Everything you need to know! (11 pages long)
6 Feb 2017
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Chapter 9 reporting and analyzing long-lived assets. Long-lived resources that a company controls, are tangible (have physical substance), and are not intended for sale to customers. Used for production and sale of goods or services to customers, for rental to others, or for administrative purposes. Operating expenditures are expensed: operating expenditures expenditures that benefit only the current period. They are immediately charged against revenues in an expense. Capital expenditures are capitalized in a long-lived asset account and recorded as either property, plant, or equipment: capital expenditures expenditures that benefit future periods. All costs related to purchase of land. All costs for additional work required to prepare the land for intended use. All demolition and removal costs for an old building on site, less any proceeds from salvaged materials. Recorded separately from land and are depreciated over their useful lives. Decline overtime and require maintenance and replacement.
