ECON

31問 • 1年前

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One of the most important applications of perpetuity.

Capitalized Cost

The __ of any property is the sum of the first cost and the present worth of all costs of replacement, operation and maintenance for a long time or forever.

Capitalized Cost

Is any method of repaying a debt, the principal and interest included, usually by a series of equal payments at equal interval of time.

Amortization

Is the decrease in the value of physical property with the passage of time.

Depreciation

Refers to the decrease in the value of a property due to the gradual extraction of its contents.

Depletion

Is the present worth of all future profits that are to be received through ownership of a particular property.

Value

The __ of a property is the amount which a willing buyer will pay to a willing seller for the property where each has equal advantage and is under no compulsion to buy or sell.

Market Value

The __ of a property is what the property is worth to the owner as an operating unit.

Utility or Use Value

Is the value which is usually determined by a disinterested third party in order to establish a price that is fair to both seller and buyer.

Fair Value

Is the worth of a property as shown on the accounting records of an enterprise.

Book Value

Is the price that can be obtained from the sale of the property after it has been used.

Salvage or Resale Value

Is the amount the property would sell for if disposed off as junk.

Scrap Value

Is due to the lessening of the physical ability of a property to produce results.

Physical Depreciation

Its common causes are wear and deterioration.

Physical Depreciation

Is due to the lessening in the demand for the function which the property was designed to render.

Functional Depreciation

Its common causes are inadequacy, changes in styles, population centers shift, saturation of markets or more efficient machines are produced.

Functional Depreciation

The __ of a property is the length of time during which it is capable of performing the function for which it was designed and manufactured.

Physical Life

Is the length of time during which the property may be operated at a profit.

Economic Life

This method assumes that the loss in value is directly proportional to the age of the property.

Straight Line Method

This method assumes that a sinking fund is established in which funds will accumulate for replacement.

Sinking Fund Formula

In this method, sometimes called the constant percentage method or the Matheson Formula.

Declining Balance Method

Is assumed that the annual cost of depreciation is a fixed percentage of the salvage value at the beginning of the year.

Declining Balance Method

This method is very similar to the declining balance method except that the rate of depreciation k is replaced by 2/L.

Double Declining Balance Method

This method assumes that the total depreciation that has taken place is directly proportional to the quantity of output of the property up to that time.

Service-Output Method

This method has the advantage of making the unit cost of depreciation constant and giving low depreciation expense during periods of low production.

Service-Output Method

Is the process of determining the value of certain property for specific reasons.

Valuation or Appraisal

The person engaged in the task of valuation.

Appraiser

Is that element of value which a business has earned through the favorable consideration and patronage of its customers arising from its well-known and well conducted policies and operation.

Goodwill

Is an intangible item of value arising from the exclusive right of a company to provide a specific product or service in a stated region of the country.

Franchise

Is an intangible value which an actually operating concern has due to its operation.

Going Value

Is the amount of money spent in organizing a business and arranging for its financing and building.

Organization Cost

Enumeration

Sabrina Mikhaela Canindo · 42問 · 1年前

Enumeration