Chapter 9 reporting and interpreting property, plant, and. Long-term asset: also long-lived assets or capital assets. Tangible and intangible resources owned by a business and used in its operations over several years: tangible assets. If it has material value separate item on balance sheet. Reported as separate item on balance amortized. sheet/in notes: natural resources, intangible assets. Often arise from intellectual effort and are known as intellectual property. Fixed asset turnover = net sales (or operating revenue) Costs are capitalized when they are recorded as assets instead of as expenses in the current period. Acquisition cost: net cash equivalent amount paid or to be paid for the asset. Acquisition methods: for cash, for debt, for equity, by construction, as a basket purchase of assets. Capitalized interest: represents interest on borrowed funds directly attributable to construction until the asset is substantially complete. Basket purchase: an acquisition of two or more assets in a single transaction for a single lump sum.