Business Administration 2257 Chapter Notes - Chapter 9: The Purchase Price, Intangible Asset, Asset Turnover

• School: Western University
• Department: Business Administration
• Course: Business Administration 2257
• Professor: J S

Document Summary

Chapter 9 reporting and analyzing long-lived assets. Not intended for the sale to customers. Records all costs that benefit future periods (capital expenditures: costs that only benefit this period are called operating expenditures. 4 categories of property, plant and equipment land: land improvements, buildings, equipment. Land: common costs include, survey, title search, legal fees, any additional work required to use the land (clearing, draining, etc. , one time costs required for getting the land ready to use. Land improvements: structural additions made to the land, common costs include, driveways, sidewalks, fences, lighting, parking lots, decline in service potential over time, requires maintenance and replacements, typically made after acquisition. Buildings: all costs directly related to the purchase or construction, common costs include, remodelling rooms and offices, roofs, floors, electrical wiring, plumbing, architect fees, building permits, excavation costs, decline in service potential over time, requires maintenance and replacements. Equipment: common costs include, freight charges, expenditures for assembly, installation and testing.