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Key Terms

  • Accumulated Depreciation: Contra-asset account showing total depreciation taken
  • Amortization: Allocation of intangible asset cost over useful life
  • Capitalize: Record cost as asset rather than expense
  • Depreciation: Allocation of tangible asset cost over useful life
  • Intangible Assets: Non-physical assets providing future benefits
  • Salvage Value: Estimated value of asset at end of useful life
  • Tangible Assets: Physical assets that can be seen and touched
  • Useful Life: Expected period an asset will be used