"CLEP Financial Accounting," Vocabulary from Chapter 16

This list focuses on land, natural resources, and intangible assets.

Here are links to all the chapters of the test prep book published by Research & Education Association: Chapter 1, Chapter 2, Chapter 3, Chapter 4, Chapter 5, Chapter 6, Chapter 7, Chapter 8, Chapter 9, Chapter 10, Chapter 11, Chapter 12, Chapter 13, Chapter 14, Chapter 15, Chapter 16, Chapter 17, Chapter 18, Chapter 19, Chapter 20
25 words 12 learners

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Full list of words from this list:

  1. amortization
    reducing the value of an asset over a period of years
  2. depletion
    the state of being used up
  3. resource
    a new or reserve supply that can be drawn upon when needed
  4. intangible
    assets that are saleable though not material or physical
  5. patent
    a document granting an inventor sole rights to an invention
  6. exclusive
    not divided or shared with others
  7. produce
    create or manufacture a man-made product
  8. invention
    a creation resulting from study and experimentation
  9. copyright
    the exclusive right to sell a work
  10. publish
    prepare and issue for public distribution or sale
  11. perform
    give a dramatic or musical entertainment
  12. reproduce
    make a copy or equivalent of
  13. trademark
    a registered symbol identifying a product's manufacturer
  14. identification
    something giving the characteristics of a person or thing
  15. infringement
    an act that disregards an agreement or a right
  16. goodwill
    intangible asset valued according to advantage to a business
  17. profitable
    yielding material gain
  18. franchise
    a statutory right or privilege granted by a government
  19. license
    a legal document giving official permission to do something
  20. research
    systematic investigation to establish facts
  21. development
    a process in which something passes to a different stage
  22. expenditure
    money paid out; an amount spent
  23. indefinite
    vague or not clearly defined or stated
  24. assets
    anything of material value owned by a person or company
    Types of fixed assets are equipment, furniture, buildings, land, land improvements, natural resources, intangible assets, and indefinite life intangible assets. Except for land, their costs eventually affect the income statement as different types of expenses (depreciation, depletion, amortization, and adjustment).
  25. clue
    evidence that helps to solve a problem
    The reason there is no "accumulated amortization" account for intangible assets is not logical. Just remember that the credit for amortization directly lowers the intangible asset, whereas the credit for depletion is a contra-asset called "accumulated depletion." The CLEP will test your knowledge of this difference.
Created on November 2, 2016 (updated December 14, 2016)

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