MGMT 35000 Study Guide - Final Guide: Intangible Asset, Common Stock, Financial Statement

• School: Purdue University
• Department: Management
• Course: MGMT 35000
• Professor: Troy Janes

Document Summary

The cover-up always gets people in more trouble than the original misdeed. Recognized: boil all estimates and judgments into one number and then make a journal entry (face); must meet the definition of the elements of financial statements and be reliably measurable. Disclosed: skip the journal entry and rely on the notes (footnote), not on financial statement. Land; cost: purchase price, legal fees, escrow fees, commissions, surveying fees, clearing and grading costs, street and water line assessments. Land improvements (landscaping, paving, fencing); cost: improvements, materials, labor and overhead. Equipment; cost- purchase price, taxes freight, insurance, installation, reconditioning and testing costs. Patent; cost- purchase price filing and registry fees, cost of subsequent litigation to protect right- not internal r & d costs [trademark and copyright same] Acquired customer list; cost- purchase price when acquired from another company. Costs to internally develop a customer list are expensed as incurred.