by Online Tutorial & Training Guide | Jan 29, 2026 | Measurement & Valuation, Terminologies
Similar to depreciation but applied to intangible assets like patents, software, or franchise rights. It spreads the cost over the asset’s economic life. Ensures expenses align with benefits.
by Online Tutorial & Training Guide | Dec 9, 2025 | Measurement & Valuation, Terminologies
The systematic allocation of the cost of tangible assets (e.g., buildings, equipment) over their useful lives. It reflects wear and obsolescence. Depreciation is an expense but does not involve cash outflow.
by Online Tutorial & Training Guide | Nov 10, 2025 | Measurement & Valuation, Terminologies
The expected period an asset will be productive for business purposes. Used to determine depreciation schedules. Can differ from physical life due to obsolescence.
by Online Tutorial & Training Guide | Sep 28, 2025 | Measurement & Valuation, Terminologies
The estimated selling price of inventory minus costs of completion and selling. Ensures inventory is not overstated. A conservative valuation method.
by Online Tutorial & Training Guide | Sep 21, 2025 | Measurement & Valuation, Terminologies
The estimated value of an asset at the end of its useful life. Used in calculating depreciation. Also called salvage value.
