Accounting 6.03 Vocabulary

Front

Plant asset

Back

Asset that will be used for a number of years in the operation of a business

Front

Depreciation Expense

Back

The portion of a plant asset's cost that is transferred to an expense account in each fiscal period during the plant asset's useful life

Front

Straight-line method of depreciation

Back

Method of calculating depreciation which charges an equal amount of depreciation expense for a plant asset in each year of its useful life

Front

Estimated salvage value (Estimated disposal value)

Back

The amount an owner expects to receive when a plant asset is removed from use

Front

Estimated useful life

Back

The number of years a plant asset is expected to be used

Front

Plant asset record

Back

An accounting form on which a business records information about each plant asset

Front

Gain on plant assets

Back

Revenue that results when a plant asset is sold for more than book value

Front

Loss on plant assets

Back

The loss that results when a plant asset is sold for less than book value