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Ch 9: Long-Term Assets in Accounting

About This Chapter

Watch informative video lessons to learn about long-term assets in the field of accounting. Take a multiple-choice quiz for self-assessment at the end of every lesson.

Long-Term Assets in Accounting - Chapter Summary and Learning Objectives

There are a number of long-term assets that can be held, and which support a financial portfolio. Such assets may help in making financial decisions or present opportunities that would otherwise be unavailable. This chapter explains long-term assets and related accounting practices. Each lesson details various aspects of such holdings, like specific purposes and uses, along with examples of different types of long-term assets. Take a short quiz to test your knowledge of each lesson and contact an instructor with any questions. These lessons cover such topics as:

  • What are plant assets?
  • How to apply the cost principle
  • What is depreciation
  • Capital vs. revenue expenditures
  • What is asset disposal?
  • Intangible assets

Video Objective
Long-Term Operating Assets: Acquisition & Uses Get the facts on acquiring and using long-term assets.
Plant Assets: Definition & Accounting Issues Discover plant assets relating to accounting.
Applying the Cost Principle to Compute Plant Assets See how the cost principle applies to plant assets.
Acquisition of Property, Plant & Equipment Learn about acquiring different types of assets.
How to Calculate Depreciation Expense: Definition & Formula Understand the formula used to calculate depreciation expense.
Methods of Depreciation Find out how assets can depreciate.
Partial-Year Depreciation & Changes in Estimates Examine depreciation in a partial-year timeframe and learn about changing estimates.
Reporting Depreciation on the Balance Sheet See how to report depreciation.
Comparing Revenue Expenditures & Capital Expenditures Distinguish between these two expenditures.
How to Account for Asset Disposal Learn about accounting for asset disposal.
Accounting for Natural Resource Assets & Depletion Explore accounting as it relates to natural resources.
What are Intangible Assets? - Definition & Types Discover the details of intangible assets.
Measuring Property, Plant & Equipment Asset Efficiency Learn how to measure asset efficiency.
Accelerated Depreciation Methods Explore different methods of accelerated depreciation.

14 Lessons in Chapter 9: Long-Term Assets in Accounting
Long-Term Operating Assets: Acquisition & Uses

1. Long-Term Operating Assets: Acquisition & Uses

The acquisition of long-term operating assets represents a significant investment by a company and these assets are used by companies to generate revenue over a number of years.

Plant Assets: Definition & Accounting Issues

2. Plant Assets: Definition & Accounting Issues

Companies have a number of different types of assets that they have to keep track of. In this lesson, we'll see how companies account for plant assets, which ranges from construction sites to delivery trucks.

Applying the Cost Principle to Compute Plant Assets

3. Applying the Cost Principle to Compute Plant Assets

When purchasing a plant asset, we must determine its value and what can be included in the total cost. In this lesson, you will learn how to apply the cost principle when computing plant assets.

Acquisition of Property, Plant & Equipment

4. Acquisition of Property, Plant & Equipment

Long-term assets can be broken down into several categories. One category is called property, plant, and equipment . This lesson will concentrate on the acquisition of property, plant, and equipment.

How to Calculate Depreciation Expense: Definition & Formula

5. How to Calculate Depreciation Expense: Definition & Formula

As property wears out, it loses some of its value, which is called depreciation. In this lesson, we will learn three of the most common methods of calculating depreciation expense, including the straight-line method.

Methods of Depreciation

6. Methods of Depreciation

After watching this video lesson, you will understand the differences between the different depreciation methods that are available to you. We will discuss three different methods depending on how you use the equipment that you want to calculate the depreciation for.

Partial-Year Depreciation & Changes in Estimates

7. Partial-Year Depreciation & Changes in Estimates

This video lesson will teach you about depreciation calculations for taxes and how to calculate partial-year depreciation for large items that you own for just part of the year. Learn how changes in estimates may affect these calculations.

Reporting Depreciation on the Balance Sheet

8. Reporting Depreciation on the Balance Sheet

In this video lesson, we talk about how to report depreciation on the balance sheet versus the income statement. Learn why the numbers may be different.

Comparing Revenue Expenditures & Capital Expenditures

9. Comparing Revenue Expenditures & Capital Expenditures

Accountants view revenue expenditures and capital expenditures very differently. But how do you tell the difference? This lesson explains how to categorize the two types of expenditures for accounting purposes.

How to Account for Asset Disposal

10. How to Account for Asset Disposal

Capital assets are items the company owns that are used to generate revenue, such as equipment and machinery. In this lesson, you will learn about three methods to dispose of a capital asset: sale, retirement or exchange.

Accounting for Natural Resource Assets & Depletion

11. Accounting for Natural Resource Assets & Depletion

Many companies are in the business of mining natural resources from the earth. How does a company account for the value of the land as those assets are removed? This lesson will describe the accounting procedure called depletion.

What Are Intangible Assets? - Definition & Types

12. What Are Intangible Assets? - Definition & Types

After reading through this lesson, you will see that intangible assets of a company actually encompass more than just intellectual property. It also encompasses how a company operates.

Measuring Property, Plant & Equipment Asset Efficiency

13. Measuring Property, Plant & Equipment Asset Efficiency

A typical company spends a great deal of money on property, plant, and equipment assets. Calculating the asset turnover ratio helps companies determine if their assets are being used efficiently.

Accelerated Depreciation Methods

14. Accelerated Depreciation Methods

When it comes to calculating depreciation amounts for large office equipment or vehicles, there are two common methods that allow you to calculate more depreciation in the first few years of the product's life. Learn about them in this video lesson.

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