Long-Term Assets Financial Accounting

A set of vocabulary flashcards covering key terms related to long-term assets in financial accounting.

Tangible Assets

Physical assets such as land, buildings, and equipment that possess physical substance.

Intangible Assets

Non-physical assets such as patents, trademarks, copyrights, and goodwill that often exist based on legal contracts.

Land Improvements

Expenditures made to enhance the value of land, such as parking lots and landscaping.

Basket Purchases

Acquisition of multiple assets for a single purchase price that must be recorded separately based on their fair values.

Depreciation

The allocation of an asset’s cost to expense over time, reflecting the asset's reduced value.

Amortization

The process of allocating the cost of intangible assets to expense over their estimated useful lives.

Impairment

Occurs when the expected future cash flows from a long-term asset fall below its book value.

Goodwill

The portion of the purchase price that exceeds the fair value of identifiable net assets during an acquisition.

Patents

Exclusive rights granted for a period of 20 years to manufacture a product or use a process.

Copyrights

Exclusive rights given to the creators of published works, lasting for the creator's life plus 70 years.