ACC - Accounting ACC 2361 Chapter Notes - Chapter 9: Asset, Intangible Asset, Fixed Asset

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Types: tangible assets: have physical substance, land, buildings, machinery. Typically grouped together on the balance sheet as property, plant, and. Also called (cid:498)fixed(cid:499) assets: intangible assets: no physical substance, brand names, trademarks, licensing rights. Mostly legal docs describing their rights indicate their existence. Sample balance sheet for a company and its assets: Less common types of tangible assets: land improvements, sidewalks, pavements, landscaping, fencing. These are added to improve the usefulness of land. These types of assets deteriorate over time, whereas land is assumed to last forever: construction in progress, costs of constructing new buildings and equipment. When construction is finished, these costs are moved from this account into the building or equipment account to which they relate. If land, building, or a piece of used equipment is bought and it incurs the following, then these costs would be capitalized since they are needed to prepare an asset for use: demolition, renovation, repair costs.

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