AJAX progress indicator
  • amortization
    The process used to allocate the cost of an intangible asset to the accounting periods benefited
  • betterment
    Expenditures that improve or increase the service potential of an asset even beyond its original new condition; such costs may be capitalized by increasing the asset's cost
  • boot
    Term used to describe additional monetary consideration that may accompany an exchange transaction
  • commercial substance
    The quality of an exchange transaction such that it changes the future cash flow potential of the entity
  • depletion
    The process used to allocate the cost of a natural resource asset to the accounting periods benefited
  • exchange transaction
    Trading one asset for another; to be booked at fair value if the transaction has commercial substance
  • impairment
    When the carrying amount of an asset is not recoverable from its future cash flow
  • intangible asset
    Long-term asset that lacks physical existence; contract rights, copyrights, patents, trademarks, etc.
  • natural resources
    Oil and gas reserves, mineral deposits, thermal energy sources, and standing timber are just a few examples of such assets that a firm may own
  • replacement
    A restoration of an asset, at least partially, to its original condition; such costs may be capitalized by reducing accumulated depreciation
  • revenue expenditure
    Not a capital expenditure; to be expensed as incurred