Anh văn chuyên ngành 2 - AC11 (92)

The balance sheet will show the total of debtor before writing off bad debts.

The bad debts account serves as a ………….point for debts written off over the year.

Any decrease in the provision for doubtful debt will be seen as an expense to the firm.

Amounts due from debtors, which are individually written off should be debited to bad debts account.

A………..of a debt may be written off as a bad debt if the debtor is not able to pay all of what is owed.

In straight line method to calculate depreciation, the eventual disposal…………..is estimated.

The main………….of depreciation are physical deterioration, economic factors and time factors.

Depreciation is the estimate of the …………in value of fixed assets over a period of time.

Expenditure incorrectly treated as revenue expenditure will understate expenses and increase profits.

Capital expenditure is the money spent on the ………… of fixed assets or on improvements to fixed assets.

Revenue expenditure is the day-to-day …………. costs of a business.

The main difference between the two types of expenditure is the ………… of time the expenditure is of benefit to the business.

Costs of business belong to capital expenditure.

Revenue expenditure is chargeable to the trading and profit and loss account.

Revenue expenditure is chargeable to the trading and profit and loss account while capital expenditure results in ………… figures for the balance sheet.

Expenditure incorrectly treated as capital expenditure will overstate the assets on the balance sheet.

Expenditure incorrectly treated as capital expenditure will overstate the …………… on the balance sheet.

Capital expenditure decreases the figure of assets in the balance sheet.

Where business ………… (e.g. telephone) are used for the owner’s personal use, this is also regarded as drawings, and adjustments must be made at the end of the year to reflect this.

Capital expenditure is aimed at providing long-term benefits.