learning all these key terms:Accelerated depreciation method: A depreciation method that provides for a higher depreciation amount in the first year of the asset$$s use, followed by a gradually declining amount of depreciation. Amortization: The periodic transfer of the cost of an intangible asset to expense or of a bond discount to interest expense. Book value: The difference between the cost of a fixed asset and its accumulated depreciation. Boot: The remaining amount a buyer owes after the trade$-$in allowance when a fixed asset is traded in for a similar asset. Capital expenditures: The costs of acquiring fixed assets, adding to a fixed asset, improving a fixed asset, or extending a fixed asset$$s useful life. Copyright: The exclusive right to publish and sell a literary, artistic, or musical composition. Depletion expense: The process of transferring the cost of natural resources to an expense account. Depreciable cost: The amount of an asset$$s cost that will be allocated to depreciation expense over its useful life, determined by the difference between the asset$$s initial cost and its residual value. Depreciation: The systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life. Double$-$declining$-$balance method: A method of depreciation that provides for a declining periodic depreciation expense over the expected useful life of an asset. Expected useful life: The estimated length of time an asset will be used in normal business operations. Fixed asset turnover ratio: The number of sales dollars earned per dollar of fixed assets, computed by dividing sales by the average book value of fixed assets. Fixed assets: Physical resources that are owned and used by a business and are permanent or have a long life; long$-$term or relatively permanent tangible assets such as equipment, machinery, buildings, and land that are used in normal business operations. Goodwill: An intangible asset that is created from such favorable factors as location, product quality, reputation, and managerial skill. Initial cost: The purchase price of an asset plus all costs to obtain and ready it for use. Intangible assets: Long$-$term assets that are used in the operations of a business, are not held for sale, and are without physical qualities. Patents: Exclusive rights to produce and sell goods with one or more unique features. Residual value: The estimated value of a fixed asset at the end of its useful life. Revenue expenditures: Costs that benefit only the current period or costs incurred for normal maintenance and repairs of fixed assets. Straight$-$line method: A method of depreciation that provides for equal periodic depreciation expense over the estimated life of a fixed asset. Trade$-$in allowance: The amount a seller allows a buyer for a fixed asset that is traded in for a similar asset. Trademark: A name, term, or symbol used to identify a business and its products. Units$-$of$-$activity method: A method of depreciation that provides the same amount of depreciation expense for each unit of an asset's activity, which may be expressed in hours, miles driven, or quantity produced.