Friday, 20 November 2020

DEPRECIATION AND AMORTIZATION PROFESSIONAL ENGLISH IN USE FOR FINANCE

PROFESSIONAL ENGLISH IN USE FOR FINANCE

9. DEPRECIATION AND AMORTIZATION

 

A

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


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,


 

ANSWER KEY

 

 

No comments:

Post a Comment

thank you for visiting my blog and for your nice comments