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IAAO 500 Glossary Study Guide

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IAAO 500 Glossary Study Guide. Acquisition Cost - answerThe cost used in accounting to represent the purchase price of an asset. If installation and other associated costs are included, it should be referred to as total acquisition cost. Bill and Hold Goods - answerA type of inventory that has ...

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©THEBRIGHT EXAM SOLUTIONS

11/06/2024 10:41 AM

IAAO 500 Glossary Study Guide.

Acquisition Cost - answer✔The cost used in accounting to represent the purchase price of an
asset. If installation and other associated costs are included, it should be referred to as total
acquisition cost.

Bill and Hold Goods - answer✔A type of inventory that has been invoiced by not shipped from
the seller to the buyer.

Chattel - answer✔An item of tangible movable or immovable property except real estate,
freehold, and things (such as buildings) connected with real property. A synonym for personal
property.

Consigned Goods - answer✔A type of inventory in the possession of a selling agent but owned
by another party. The seller has no equity, no control of price or sale, and receives none of the
profit (as such) from sale of the property (but may receive a sales commission).

Construction In Progress - answer✔Property that is in a process of change from one state to
another, such as the conversion of personal property from inventory to fixed asset by
installation or the conversion of personalty to realty by becoming a fixture.

Discovery - answer✔The process by whereby the assessor identifies all taxable property in this
jurisdiction and ensures that it is included on the assessment role.

Economic Life - answer✔The period of time over which an asset's operation is economically
feasible. The economic life may or may not be equivalent to physical life of the asset.

External (Economic) Obsolescence - answer✔The loss in appraisal value (relative to the cost of
replacing it with property of equal utility) resulting from causes outside the property suffering
the loss. Usually locational in nature in depreciation of real estate; it is more commonly market
wide in personal property and is generally considered to be economically unfeasible to cure.

Effective Age - answer✔An age assigned to an asset based on a combination of its actual age
and condition.

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