BU127 Chapter 9: Chapter 9 Textbook
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BU127 Full Course Notes
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Document Summary
Chapter 9 textbook: reporting and interpreting property, plant, and equipment natural resources and intangibles: Long lived assets are tangible or intangible resources owned by a business and used in its operations to produce benefits over several years. Intangible assets have property ownership rights but not physical substance. Acquisition cost is the net cash equivalent amount paid or to be paid for the asset. Capitalized interest represents interest on borrowed funds directly attributable to construction until the asset is ready for its intended use. Basket purchase is an acquisition of two or more assets in a single transaction for a single lump sum. Ordinary repairs and maintenance are expenditures for normal operating upkeep of long lived assets. Revenue expenditures maintain the productive capacity of the asset during the current accounting period only and are recorded as expenses. Extraordinary repairs are infrequent expenditures that increase the asset"s economic usefulness in the future.
