BUS 251 Chapter Notes - Chapter 8: Book Value, Impaired Asset, Intangible Asset

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Maureen Fizzell

Document Summary

Three main categories of long term-assets (aka capital assets): Property, plant, and equipment aka tangible assets b/c they have a physical presence. Used to generate revenues over muliple future periods. They are not purchased in the intent to be resold otherwise they would be inventory, however they can sell them when they are done with them. Intangible assets long-term assets w/o physical form. Separately ideniiable from other assets ( meaning they can be resold, licensed, or rented: goodwill long-term asset from when two businesses are combined. The premium or excess paid by one business when it is acquiring another. Signiicance to users: they have signiicant costs and will impact a company"s operaions for several years, which they are criical to a company"s success. Purchase of long-term assets represents an ouflow of cash, while the proceeds represent an inlow o. Expect cash lows from invesing to be negaive.