A
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Fixed assets
A company’s
assets are usually divided into current assets like cash and stock or
inventory, which will be used or converted into cash in less than a year,
and fixed assets such as building and equipment, which will continue to be
used by the business for many years.
|
B
|
Valuation
Assets such
as buildings, machinery and vehicles are grouped together under fixed
assets. Land is usually not depreciated because it tends to appreciate, or
gain in value. British companies occasionally revalue – calculate a new
value for – appreciating fixed assets like
|
C
|
Depreciation systems
The most common system of
depreciation for fixed assets is the straight-line method, which means
charging equal annual amounts
against profit during the lifetime of the asset
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EXERCISES
9.1
|
Match the
words in the box with the definitions below. Look at A and B opposite to
help you.
1
|
to record
something at a different price
|
2
|
assets that
will no longer be in the company in 12 months’ time
|
|
9.2
|
Match the
nouns in the box with the verbs below to make word combinations. Then use
some of the word combinations to complete the sentences below. Look at A, B
and C opposite to help you.
1
|
Because we
___________ the ___________ ___________, we don’t have worry about the
market value of fixed assets.
|
|
9.3
|
Match the two parts of the
sentences. Look at B and C opposite to help you.
1
|
All fixed
assets can appreciate if there is high inflation
|
2
|
Accelerated
depreciation allows companies to
|
3
|
Fixed assets generally lose
value, except for land,
|
|
|
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