COMMERCE 1AA3 Study Guide - Final Guide: Fgl Sports, Asset, Ddb Worldwide
12 Dec 2016
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Chapter 7: property, plant, equipment, and intangible assets. Assets that are actively used in operations to generate future benefits beyond one year. Can be classified into tangible and intangible assets. Resources that have physical substance (a definite size and shape), are used in the operations of a business, and are not intended for sale to customers. Also called property, plant, and equipment; fixed assets; capital assets; and operational assets. ), and natural resources (mineral deposits and timber) Except for land, all tangible assets are subject to depreciation or depletion (natural resources) Intangible assets involve rights, privileges, and competitive advantages that result from ownership of long-lived assets that do not possess physical substance. Land improvements are improvements to land that will eventually deteriorate include fencing, paving, sprinkler systems, lighting, parking lots, and driveways. Leasehold improvements are improvements to leased assets. The cost of leasehold improvements should be depreciated over the term of the lease.
