Long Lived Assets Unit 2

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5 Terms

1
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Fixed Assets

Physical Assets

  • Buildings

  • Machinery

  • Land (does not depreciate)

  • Construction in Progress (Does not depreciate)

  • Tools 

  • vehicles 

  • Leasehold improvements 

  • Computers 

  • land improvements (fences and such) 

2
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Common Term for Cash Price for PPE

CAPEX

3
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Acquiring Fixed Assets

  • Initially record fixed assets at the amount paid to acquire the assets and ready it for its intended use

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Cash Expenditure

Increases the assets capacity, useful life, or efficiency (engine in a truck)

We capitalize this

5
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Ordinary Repairs

Regular Maintenance, we will probably have to do it again later (oil change)

We expense this immediately