Accelerated method Accounting/Asset Depreciation actual dollars Adjusted Basis amortization annuity asset asset class Asset Depreciation

Ranges (ADRs) avoidance balance sheet bonds Book Value book value break-even Capital Gain capital gain capital recovery cost closed-end combined compound interest contingent contingent Cost basis Cost depletion co-terminated co-terminated co-terminated coupon rate credit debenture debt to equity ratio

any depreciation method that produces larger deductions for depreciation in the early years of a project's life amount allocated during eth period to amortize the cost of acquiring long term assets over the useful life of the assets cash flows in monetary units used at the time of the transaction represents all the depletion allowed The reduction of debt by a prearranged plan; usually regular periodic payments A series of end-of-period payments or receipts, often uniform in amount a resource of any kind that has value

specify a range of lives for classes of assets based on historical data deffering income to future years (not simply a tax defferal_) is an example of (legal) tax a financial statement showing the position of a compnay at a given point in time debt financing comes from loans or the sale of orginal cost of an asset less accumulated depreciation the value of an asset as it appears on a balance sheet, equal to cost minus accumulated depreciation the term for the point where marginal cost equals marginal revenue term used to descrive the amount received on sale of an asset that exceeds its original cost an increase in the value of capital asset that gives it a higher worth than the purchase price, when the asset is sold the annualized equivalent cost of first investing in an asset and later disposing of it the type of mutual fund traded on the open market that may vary widely from its NAV the "market" interest rate that includes an inflation component is an example of a rate of interst the type of interest that is periodically added to tehe balance of an investment or loan a project that can only be done if another is also done is said to be upon it the cost of an asset used to determine the depreciation base; generally includes te actual cost of the asset and all other incidental expenses, such as frieght, site preparation, and installation determined by taking the adjusted basis of the mineral property divided by the total number of recoverable units in the deposit, and the resulting rate is multiplied by the number of units sold to compare alternatives using PW, they MUST be in order to compare alternative using PW or FW, they must be in order to compare alternative using PW or FW, they must be the annual interest paid on a bond divided by its face value, also called "nominal yield" an amount that results in a dollar for dollar reduction in cash flow for taxes is called a tax a bond representing a corporate promise to pay, not backed by any asset a "targeted capital structure' aims to maintain the

deduction deflation delayed annuity depletion depletion depreciable asset depreciation depreciation accounting Depreciation Recapture Depreciation Recapture depreciation recapture double-declining balance method Economic depreciation eEffective tax rate evasion exchange-traded first cost (investment) fixed assets functional depreciation half-year half-year convention Income statement incremental incremental index indirect inflation inflation inflation intangible intangible

an amount that can be subtracted from taxable income is called the term describing a progressive increase in the purchasing power of money a uniform series of payments starting in the future is called a the term describing the decrease with production in value of a mineral property unlike depreciation and amortization, which mainly describe the deduction of expenses due to the aging of equipment and property, depletion is the actual physical reduction of natural resources by companies it must be something that wears out, decays, gets used up, becomes obsolete, or loses value form natural causes the distribution of original cost of an asset through periodic chanrges to operations accounts for the cost of fixed assets in a pattern that matches their decline in value over time term for the tax due from sale of an asset whose price exceeds its book value but not its basis

a depreciation method, in which double the straight-line deprecation amount is taken the first year, and then that same percentage is applied to the undepreciated amount in subsequent years can be calculated by subtracting the current market value form the original price ( purchase price - market value) the rate of taxpayer would be taxed as if taxing was done at a constant rate failure to report income is an example of tax the type of mutual fund traded on the open market that stays relatively close to its NAV the amount initialy invested in a project, generally incurred at time zero economic resources, such as equipment and real estate, that are acquired to provide future cash flows occurs as a result of changes in the organization or in technology that decrease or eliminate the need to an asset the MACRS recovery percentages use this convention, that it is assumed that all assets are placed in service at midyear and that they will have zero salvage value a financial statement showing revenues and expenses over a period of time in ranking mutually exclusive alternatives by IRR, evaluate the --- return on added investment in ranking mutually exclusive alternatives by IRR, evaluate the --- return on added investment a mutual fund that is managed to match the S&P 500 is an example of an fund the term for costs that re not attributable to a specific unit of product a persistent rise in prices; a decline in the purchasing power of money a persistent rise in the gernal price level resultin gin decline of purchasing power a persistent rise in the gernal price level resultin gin decline of purchasing power term used to describe assets like intellectual property or goodwill that can't be touched the term for the kind of asset that cannot be touched

interest inventory land lease lease leverage liability life cycle cost liquidity liquidity liquidity MACRS method MACRS method marginal cost Marginal Marginal tax rate MARR matching Matching concept mixed mortgage mortgage Mortgage mutually exclusive non0systematic open-end opportunity cost opportunity cost opportunity cost overhead Percentage depletion

Periodic compensation for lending money; cost or charge for the use of capital product that is finsihed and ready to be sold is an example of an an example of a non-depreciable asset term for the contract to pay for the use of an asset owned by someone else term for the contract to pay for the use of an asset owned by someone else using borrowed money to increase return (at the cost of increase risk) provides an obligation such as accounts payable, put on the right side of a balance sheet term used to describe net expenses "from cradle to grave" or "from cradle to cradle" term for the ability to fund daily operations or to sell an asset quickly at its true value term used to describe the ability to sell an asset reasonably quickly at or near its true value term used to describe the ability to sell an asset reasonably quickly at or near its true value allows taxpayers to deduct greater amounts during the few years of an assets life depreciation methods applied to assets in service after 1986 term for the cost of producing one more unit term for the cost of producing one more unit amount of tax paid on an additional dollar of an income an interest rate generally achievable from available investments, used to help decide if an independent alternative is economically acceptable the ----- principle calls for recognizing expenses in the same period as revenues a fraction of the cost of the asset is chargeable as an expense in each of the accounting periods in which the asset provides services to the firm if the project balance going forward changes sign, you have a investment a loan secured by real property such as office buildings or land a loan secured by real property such as office buildings or land a loan secured by real property such as office buildings or land if choosing one alternative rules out others, then the alternatives are the type of risk that can be minimized by diversification is risk the type of mutual fund bought from and sold to the fund manager is a/an fund term for cost incurred when you choose one course of action in preference to another the cost of not doing something because you are doing something else the cost of not doing something because you are doing something else term for a corporate-level cost that is allocated to a specific product an annual allowance of a percetage of the gross income from the property; obtained by multiplying a specified percentage times the gross income from sales of the material sold during the year

period costs Physical depreciation planning horizon product costs pure put option real dollars real property Recovery allowance percentage recovery period reinvestment Reinvestment risk repeatability repeatability repeatability retained earnings return on investment Salvage Value Salvage Value Simple Interest spillover Straight Line depreciation straight-line sunk cost sunk cost Sunk Cost systematic tax credits tax deductions tax defferal tax exemptions units-of-production method

the term for costs that are expensed when paid a reduction in an asset's capacity to perform in its intended service due to physical impairment, leading to high maintenance costs; physical depreciation can occur in any fixed asset term for the study period used to compare alternatives costs are those expensed when the product is sold, such as rent if a series of cash flows only changes sign once, it is a investment The right to sell something to another within a given time and at a specified price cash flows relecting purchasing power rather than actual currency are in the term for land or an asset affixed to the land depreciation rates for assets within each class established by the MACRS method a problem arising from the chance that bond market interest rates may change over time the risk associated with the purchasing power of bond interst receipts is called risk the assumption made when using AFW to compare projects of unequal length if annual worth is used to compare projects of unequal length, this requires assuming if annual worth is used to compare projects of unequal length, this requires assuming equity financing uses funds raised from stock issues or to select the best bundle of independent projects, it is typical to plot vs. capital rewuiremnts the amount, positive or negative, that results from disposal or termination of an investment an assets estimated value at the end of its life- the amount eventually recovered through sale, trade-in or salvage interest that is not added to the loan; charges based only on the principal of the loan consequences of a project that are not included in the economic analysis are called effects an equal dollar amount of depreciation in each accouting period using this depreciation, the amount is the same every year or month except perhaps for the first and last an expenditure, already incurred, that is irrelevant to the decision going forward a cost, already paid, that is irrelevant to the decision being made a cost, already paid, that is irrelevant to the decision being made if risk cannot be reduced by diversification it is called risk dollar for dollar reductions of tax, not taxable income are used to encourage investments in alternative energy and other popular causes reduce taxable income, and thus reduce taxes by that amount times the marginal rate means the funds can increase in value but the tax will be paid only when the money is withdrawn, such as in retirement plan simply not counted in reporting taxable income depreciation charge for a period is related to the number of service units consumed in a certain period

unrecognized gain unrecognized loss variable cost working capital Working Capital Yield to Maturity Zero-Coupon Bond

the difference if the trade-in allowance exceeds the book value the different if the trade-in allowance is less than the book value the term for a cost that varies with production term for operating funds, equal to Current Assets less Curerent Liabilities term for funds tied up in such tings as in process inventory the interest rate on a bond that an investor would realize by purchasing it now at the market price and keeping it until it matures a bond that pays no interest but instead is sold at a discount from its future value