Skip to main content
뒤로

Initial Cost of Long Lived Assets definitions

컨트롤 버튼이 '내비게이션' 모드로 변경되었습니다.
1/15
  • Long-lived Assets
    Resources expected to provide economic benefits for multiple years, including land, land improvements, buildings, and machinery.
  • Property, Plant, and Equipment
    A balance sheet category encompassing tangible long-term assets used in business operations, often abbreviated as PPE.
  • Historical Cost Principle
    Accounting guideline requiring assets to be recorded at the original purchase price plus necessary expenditures, not adjusted for market changes.
  • Land
    A non-depreciable fixed asset representing the ground owned by a business, excluding any structures or improvements.
  • Land Improvements
    Additions to land such as fences, parking lots, or lighting, which have limited useful lives and are subject to depreciation.
  • Leasehold Improvements
    Alterations made to leased property by the lessee, depreciated over the shorter of the lease term or the improvement's useful life.
  • Buildings
    Structures owned by a business, recorded at cost including purchase price and necessary expenditures, and depreciated over their useful lives.
  • Machinery
    Tangible assets like equipment used in production, capitalized at all costs to make them operational, and depreciated over time.
  • Depreciation
    Systematic allocation of an asset's cost over its useful life, reflecting wear and tear or obsolescence, except for land.
  • Useful Life
    Estimated period over which a fixed asset is expected to contribute to business operations and generate revenue.
  • Accumulated Depreciation
    Contra asset account representing the total depreciation expense charged against an asset since its acquisition.
  • Contra Asset
    An account that offsets a related asset account on the balance sheet, such as accumulated depreciation reducing asset book value.
  • Necessary Expenditures
    All costs required to acquire an asset and prepare it for intended use, including taxes, installation, and removal of old structures.
  • Salvage Value
    Estimated residual value received from disposing of an asset or its components, deducted from initial cost calculations.
  • Capitalization
    Process of recording expenditures as part of an asset's cost on the balance sheet, rather than expensing them immediately.