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Published byRodger Page Modified over 6 years ago
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Mortgages: A temporary, conditional pledge of property to a creditor as security for performance of an obligation or repayment of a debt. Accounts payable: Money which a company owes to vendors for products and services purchased on credit. Inventory: a quantity of goods in stocks. Real estate: Land or housing
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Dividend: A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
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Capital expenditures (CAPEX or capex) are expenditures creating future benefits. A capital expenditure is incurred when a business spends money either to buy fixed assets or to add to the value of an existing fixed asset with a useful life extending beyond the taxable year.
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British Company
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Salvage value is the estimated resale value of an asset at the end of its useful life. You subtract salvage value from the cost of a fixed asset to determine the amount of the asset cost that you will depreciate. Thus, salvage value is only used as a component of the depreciation calculation. For example, ABC Company buys an asset for $100,000, and estimates that its salvage value will be $10,000 in five years, when it plans to dispose of the asset. This means that ABC will depreciate $90,000 of the asset cost over five years, leaving $10,000 of the cost remaining at the end of that time. ABC expects to then sell the asset for $10,000, which will eliminate the asset from ABC's accounting records.
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