MGMT 113 Chapter Notes - Chapter 6: Title Search, Cash Flow, Retained Earnings
Document Summary
Current assets - are used relatively quickly (within a single accounting period. Long-term operational assets - used for extended periods of time (two or more accounting periods) ex. Lo 6-1: identify different types of long-term operational assets. Tangible assets can be physically sensed can include machines and other equipment, natural resources + land. Intangible assets are rights or privileges that may be represented by physical documents. Cannot be seen or touched example : patent represents exclusive legal privileges to produce and sell a particular product. Property, plant, and equipment aka plant assets or fixed assets. Examples: furniture, cash registers, machinery, delivery trucks, buildings ,etc. Level of detail used to account for assets varies by company. Depreciation - term used to recognize expense for property , plant, and equipment. When sold the costs are often expensed as cost of goods sold. Resource deposits generally have long lives, therefore are considered long-term assets.
