AJAX progress indicator
  • amortizationThe process used to allocate the cost of an intangible asset to the accounting periods benefited
  • bettermentExpenditures 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
  • bootTerm used to describe additional monetary consideration that may accompany an exchange transaction
  • commercial substanceThe quality of an exchange transaction such that it changes the future cash flow potential of the entity
  • depletionThe process used to allocate the cost of a natural resource asset to the accounting periods benefited
  • exchange transactionTrading one asset for another; to be booked at fair value if the transaction has commercial substance
  • impairmentWhen the carrying amount of an asset is not recoverable from its future cash flow
  • intangible assetLong-term asset that lacks physical existence; contract rights, copyrights, patents, trademarks, etc.
  • natural resourcesOil and gas reserves, mineral deposits, thermal energy sources, and standing timber are just a few examples of such assets that a firm may own
  • replacementA restoration of an asset, at least partially, to its original condition; such costs may be capitalized by reducing accumulated depreciation
  • revenue expenditureNot a capital expenditure; to be expensed as incurred