COMM 217 Chapter Notes - Chapter 8: Title Insurance, Book Value, Financial Statement

• School: Concordia University
• Department: Commerce
• Course: COMM 217
• Professor: Ahmad Hammami

Document Summary

Chapter 8: tangible or intangible resources owned by a business and used in its operations to produce benefits over several years. Intangible assets: no physical substance, have property ownership rights, example of intangible assets, copyrights, licenses, trademarks, soft(cid:449)are"s. Fixed asset turnover ration: (cid:3032)(cid:3047) (cid:3020)(cid:3039)(cid:3032)(cid:3046) (cid:4666)(cid:3042)(cid:3045) (cid:3042)(cid:3043)(cid:3032)(cid:3045)(cid:3047)(cid:3041)(cid:3034) (cid:3045)(cid:3032)(cid:3049)(cid:3032)(cid:3041)(cid:3048)(cid:3032)(cid:3046)(cid:4667) (cid:3049)(cid:3032)(cid:3045)(cid:3034)(cid:3032) (cid:3041)(cid:3032)(cid:3047) (cid:3033)(cid:3051)(cid:3032)(cid:3031) (cid:3046)(cid:3046)(cid:3032)(cid:3047)(cid:3046, average net fixed assets = (beginning + end balances of property, plant and equipment (net of accumulated depreciation)) / 2. Measuring and recording acquisition cost: acquisition cost: the net cash-equivalent amount paid or to be paid for the asset. It does not include financing charges and cash discounts: buildings - we include in acquisition cost, purchase price, renovation and repair costs, legal and realty fees, title fees, equipment we include in acquisition cost, purchase price. Installation cost: modification to building necessary to install equipment, transportation costs. Land we include in acquisition cost: purchase price, real estate commissions, title insurance premiums, delinquent taxes, surveying fees, title search and transfer fees.