Define Long-Lived Assets:

Explain the difference between tangible and intangible assets, and provide examples:

What is included in the cost of a tangible asset?

Define capitalization:

Which costs would not be capitalized, but rather expensed?

What 3 items are needed to calculate depreciation? Define each.

We cover the 3 most common methods of depreciation. Provide the necessary formulas to calculate each of the below, along with an explanation.

Straight-Line Method:

Units-of-Production Method:

Declining-Balance Method:

Explain how to calculate partial year depreciation and for which methods it would be necessary.

Differences in Depreciation Expense by Method:

When does asset impairment occur? What journal entry would need to be made?

Explain the process, including the journal entries, to dispose of an asset.

Describe the Acquisition, Use, and Disposal of Intangible Assets.

Acquisition:

Use Unlimited vs. Limited Life:

Disposal:

Provide the formula for the fixed asset turnover ratio and what it tells you:

Notes on Natural Resources:

Notes on Changes in Depreciation: