Accounting Terms (CH9) (Work in progress)

Plant Assets

Refer to a company’s long-lived property, plant and equipment.

(Land, Buildings, Equipment, Furniture and fixtures)

Intangible Assets

Economic resources that benefit the company but lack physical substance.
(Copyrights, Trademarks, Patents, Franchises)

Natural Resources

Resources supplied by nature.

(Timber stands, Mineral deposits, Oil and gas deposits)

Modified Accelerated Cost Recovery System (MACRS).

The deduction for depreciation on a company’s federal income tax return is calculated using an
accelerated method.

• Specifies useful lives for different asset classes that are
  typically far shorter than reasonable for financial accounting
  purposes.

Patents

An exclusive privilege granted to an inventor for a period of 20 years.

Copyrights

Protects an owner against unauthorized use of a written work, recorded work, or artwork for a specified duration, typically the life of the author plus 70 years.

Franchises

Exclusive rights to operate or sell a specific brand of product in a given geographic area.

Trademarks

The right to use certain terms, names, or symbols.

Goodwill

the amount paid by a company for another company above the identifiable net assets of the acquired company.