About This Chapter
Accounting for Fixed & Intangible Assets - Chapter Summary
Expert instructors present fixed and intangible asset accounting in this helpful and mobile-friendly chapter. Each lesson provided here covers a related topic such as methods of depreciation, writing off plant assets and accounting for natural resource assets. Take your time as you move through this chapter, and feel free to go back as many times as needed to review the information provided here. It's easy to re-watch just one portion of a video lesson with our handy video tabs feature for easy navigation. You can study any time you would like with the learning tools we've included in this chapter. Once you've completed these lessons, you should be ready to:
- Give examples of fixed assets
- Define intangible asset
- Outline different methods of depreciation, including accelerated depreciation methods
- Explain how depreciation is reported on the balance sheet
- Detail the process of writing off plant assets from financial statements
- Provide examples of amortization of intangible assets
- Describe accounting for natural resource depletion
1. What Are Fixed Assets? - Definition & Examples
A company may own different kinds of resources, among which are fixed assets. This lesson explains what fixed assets are, provides examples, and notes the importance of a business' industry in determining fixed assets.
2. 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.
3. 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.
4. 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.
5. Writing Off Plant Assets from Financial Statements
In this lesson, we'll discuss how accountants write off a plant, property, or equipment from the balance sheet. We'll use two examples: one from a personal balance sheet and another from an electric utility who just bought a power plant.
6. What Are Intangible Assets? - Definition & Types
Determine how to separate intangible assets from tangible assets. Intangible assets are those that include goodwill, patents, and copyrights. Also find out more about how to classify an intangible asset as definite or indefinite.
7. Amortization of Intangible Assets: Definition & Examples
Intangible assets cannot be seen or touched. In this lesson, we'll learn how to place a valuation on intangible assets and spread that valuation over their useful lives.
8. 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.
9. Contra Accounts & Accumulated Depreciation
Let's go through an example and see how depreciation is calculated and how depreciation expense is journalized. We will also see how the contra account called accumulated depreciation reduces the value of the asset on the balance sheet.
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Other chapters within the Accounting 202: Intermediate Accounting II course
- Accounting for Securities & Investments
- Accounting for Liabilities & Contingencies
- Accounting for Bonds & Notes Payable
- Accounting for Operating & Capital Leases
- Accounting for Shareholder Equity & Comprehensive Income
- Cash Flows & Disclosures
- Accounting for Corporate Income Taxes
- Pensions & Post-Retirement Benefits
- Identifying & Correcting Errors in Accounting
- Studying for Accounting 202