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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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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 ......... and has no value for the company.


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


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501 Business English Exercises — Printable, photocopiable.
For use in a classroom, at home, on your PC or anywhere.

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


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


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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 ......... years.


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 language is a cycle Ask a Teacher

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


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


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


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Straight ......... 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.


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The ......... balance method presumes that the asset depreciates more when it is newer and less as it ages and wears.


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Business English Practice Exercises Business English Tests — several topics are covered: office matters, job applications, computer English, money expressions, business law, operations management, retail marketing, e-commerce, accounting terms, contracts and agreements, commercial correspondence, etc.
You will be exposed to a wealth of authentic sample sentences that include a great variety of themes. This compact Business English Test Package is the only printable English test collection currently available on the Internet. It contains 501 Business English Exercises (10 questions per test plus answer keys).  Get your unique Business English Practice Exercises now!

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The annual depreciation expense recorded for the third year using the double..., Accounting for this loss, What is the difference between capital assets and fixed assets?

 

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