BU127 Study Guide - Final Guide: Book Value, Intangible Asset, Deferral
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BU127 Full Course Notes
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Tangible: land, depreciated assets, natural resources that can be depleted. Fixed asset turnover: net sales revenue/ average net fixed assets. Measures a company"s ability to generate sales given an investment in fixed assets. Acquisition cost: things needed to prep assets: include the purchase price and all expenditures needed to prepare the asset for intended use, it does not include charges and cash discounts. Equipment: purchase price, installation costs, modification to building, transportation costs. Land: purchase price, real-estate commission, surveying fees, title insurance premiums. For non-cash consideration: record the current market value: ex. 1,000,000 common shares with market value plus __ cash: credit cash and credit 50,000,000 in common shares, debit aircraft by total amount of credits. Assets include all materials, the amount of overhead and interest incurred during construction. Basket purchase of assets: total cost of combined purchase of land and building are separated based on relative market values.
