Examlex
John recently installed a new lawn in his yard. Every week he mows the lawn and adds fertilizer to make sure it continues to be healthy. In this instance, John could be categorized as a:
Straight Line Amortization
A method of writing off the cost of an intangible asset evenly over its useful life.
Equity Method
An accounting approach used to assess the investment in another company, where the investment is initially recorded at cost and subsequently adjusted to reflect the investor's share of net assets and recorded earnings of the investee.
Impairment Test
An examination to determine if an asset's carrying amount exceeds its recoverable amount, and if so, to measure the amount of impairment loss.
Book Value
A financial measurement that calculates the value of a firm's equity as it appears on the balance sheet by subtracting liabilities from assets.
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