Franchise

Franchises are rights and privileges granted to sell a service or product in specified manner. These rights are usually granted by a distributor or manufacturer. The franchisee must pay a franchise fee for such right. In addition, the franchisee is typically required...

Copyrights

Copyrights are the exclusive rights granted to publish and sell books, artistic compositions and musical compositions. The copyright holder enjoys the following exclusive rights: to print, reprint and copy the work. to sell, assign or distribute copies. to perform the...

Patents

Patents are rights granted exclusively to a person or company to produce and sell a particular invention. These rights are granted for 17 years. The costs of the patent should be debited to an asset account and then written off in a systematic manner. Unless another...

Intangible Assets

What are intangible assets? In the operations of a company there are often long term assets that are not held for sale and do not have physical qualities. These are called intangible assets. There are two major concerns in accounting for intangibles. The first problem...

Depletion

Accounting for the use of natural resources such as timber, oil, and metal ores is known as depletion. It is the entry for recording annual depletion is to debit depletion expense and credit accumulated depletion. The costs for these natural resources is accounted for...

Leases

There are two basic types of leases in the world of accounting. They are operating leases and capital leases. Leases that have one or more of the following provisions are defined as capital leases: The lease transfers ownership of the leased asset to the lessee at the...