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Accounting I Chapter 8

Across
Maintains normal operating condition; does NOT increase productivity; does NOT extend life beyond original estimate
Includes all normal and reasonable expenditures needed to get asset in place and ready for use.
Example of a natural resource.
When updating depreciation to the date of disposal in your journal entries, removing the asset cost is debit/credit?
Earth surface that has indefinite life and does NOT depreciate.
Requires that asset be valued at all necessary costs to get the asset ready for its intended purpose.
Net Sales/Average total Assets
Down
Expenditures extending the assets useful life beyond its original estimate.
When updating depreciation to the date of disposal in your journal entries, removing accumulated depreciation is debit/credit?
Expenditures to keep an asset in normal, good operating condition.
Assets that are physically consumed when used.
Major overhauls or partial replacements; extends life beyond original estimate
Total cost of a combined purchase of land and building is allocated based on their relative fair market values.
Copyright, Patents, Licenses, and Lease-Holds
Another word for betterment.
Tangible assets used in a company's operations to have a useful life of more than one accounting period.
Expenditures that make plant asset more efficient or productive.