BU127 Chapter Notes - Chapter 9: Canada Revenue Agency, Capital Cost Allowance, Income Statement
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BU127 Full Course Notes
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Document Summary
Define, classify, explain and understand the nature of long-lived assets. Apply the cost principle to the acquisition of long-lived assets. Apply various depreciation methods as economic benefits are used up over time. Explain the effect of asset impairment not he financial statements. Analyze the disposal of long-lived tangible assets. Analyze the acquisition, use, and disposal of long lived intangible assets. Describe the factors to consider when comparing companies long-lived assets. Definition: the resources owned by a business that enable it to produce the goods or services that are sold to customers. Balance sheet presentation of tangible and intangible assets: Tangible assets are also know as fixed assets. Intangibles also includes goodwill, copyrights, patents & trademarks. Anything that improves the usefulness of land (sidewalks, repairs, etc. ) The cost on constructing new buildings, and equipment. Once finished these cost are moved to their respective accounts.
