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Business English Exercises
 

Depreciation

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Home > Teaching Business English > Business English Lessons, Advanced Level # 73
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 All tests  TOP 100  Forum  Dictionaries The annual depreciation expense recorded for the third year using the double...
depreciation answer 1
The idea of depreciation is quite straightforward; for instance, a forklift is an operational asset for a company's business, and each year it loses a certain amount of value until at last it is irreparable and has no value for the company.

Correct answer: (a) irreparable

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depreciation answer 2
Calculating and accounting for this loss in value of such an asset is called depreciation.

Correct answer: (a) accounting

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depreciation answer 3
Almost all companies invest in vehicles, furniture, machinery or buildings, and those that will be used for more than one year are considered capital assets.

Correct answer: (a) capital

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depreciation answer 4
However, the entire cost of such an asset cannot be deducted in the year it is acquired.

Correct answer: (b) deducted

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depreciation answer 5
If a business reduced a single year's income by the total cost of such an asset, it would result in a profit understatement in that year and a profit overstatement during the succeeding years.

Correct answer: (d) succeeding

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depreciation answer 6
For assets that have a useful life of more than one year, the cost must be written off over at least two years.

Correct answer: (d) written

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depreciation answer 7
The yearly depreciation for an asset is calculated using its initial cost and the number of years that it will presumably retain some value.

Correct answer: (c) initial

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depreciation answer 8
At the end of each year, the annual depreciation is subtracted from the asset's cost; this determines its book value, which presumably is the same as its market value.

Correct answer: (c) book

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depreciation answer 9
Straight line depreciation, the most common method of depreciating assets, simply divides the initial cost of an asset by the number of years that it will presumably be of use.

Correct answer: (c) line

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 "get on with" vs. "come up with" Question about deprecation
depreciation answer 10
The declining balance method presumes that the asset depreciates more when it is newer and less as it ages and wears.

Correct answer: (a) declining

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