Financial Accounting Concepts: Other Assets

These flashcards cover vocabulary related to the accounting and reporting of other current and noncurrent assets, focusing on important concepts such as depletable and intangible assets.

Depletable Assets

Assets that are naturally consumed through extraction or use, like mineral resources.

Depletion Expense

An expense charged against income for the reduction in value of a depletable asset.

Amortization

The systematic allocation of the cost of an intangible asset over its useful life.

Intangible Assets

Identifiable non-monetary assets that cannot be seen or touched, such as patents and trademarks.

Cost Method

An accounting method used for recording investments where the ownership is less than 20%.

Equity Method

An accounting method used when an investor has significant influence over an investee, generally when ownership is between 20% and 50%.

Consolidated Financial Statements

Combined financial statements of a parent company and its subsidiaries.

Restoration Costs

Costs incurred to restore a resource asset to its original condition.

Salvage Value

The estimated residual value of an asset at the end of its useful life.

Accumulated Depletion

The total amount of depletion expense that has been charged against a depletable asset over time.