BIOC 212 Chapter Notes - Chapter 9: Starbucks, Asset Turnover, Product Management

• School: McGill University
• Department: Biochemistry
• Course: BIOC 212
• Professor: Dieter Reinhardt

Document Summary

Note these notes are complementary to the slides. = capital asset = fixed asset: capital assets relate to assets that are used in operations by the company for the purpose of generating income, capital assets are considered assets because. They have a future value to the company as they"ll help the company generate income. The capital asset is owned by the company. The transaction giving rise to ownership previously occurred: capital assets will provide a benefit to the company over many periods. Capital assets are long-term assets: tangible resources that are used in the operations (not intended for sale, possess physical substance, unlike intangible assets (e. g. , patents, trademarks, copyrights, for long-term use, hence depreciation (=amortization) If an outlay provides economic benefits beyond current period, capitalized. If the asset is to be used for less than 1 year, expensed in current year. P. p. e should be depreciated except for land. Historical cost is the usual basis for valuation.