Lecture Review on Long-Lived Assets and Depreciation

These flashcards cover key terms and definitions related to long-lived assets, depreciation, and related accounting concepts discussed in the lecture.

Depreciation

The allocation of the cost of a tangible asset over its useful life.

Amortization

The gradual reduction of an intangible asset's value over time.

Depletion

The reduction in the quantity of a natural resource due to extraction.

Book Value

The value of an asset after accounting for depreciation, amortization, or depletion.

Fixed Assets

Long-lived tangible assets that are not expected to be turned into cash within a year.

Salvage Value

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

Accumulated Depreciation

The total amount of depreciation expense that has been recognized against an asset since it was acquired.

Long-Lived Asset

An asset that is expected to provide economic benefits for more than one year.

Tangible Assets

Physical assets that can be touched or physically measured.

Intangible Assets

Non-physical assets that cannot be touched, such as patents and trademarks.

Capital Expenditure

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment.