Once the provision for doubtful debts has been created, it remains in the books until………..

In allowing for depreciation of fixed assets, you estimate the amount to be received on………..

With the straight line method of depreciation, the estimated disposal value should not be allowed for in calculating the annual depreciation provision.

The balance sheet will show the total of debtor after the provision for doubtful debts being deducted.

Depreciation provision account has a credit balance.

Straight line method is also termed the fixed …………..method.

The asset account balance is reduced when the asset is sold or……….

Bad debts written off are not shown in the balance sheet.

Any debt written off must be charged against the profit by means of a ……….entry in the profit and loss account.

The word ‘estimate’ in allowing for depreciation of fixed assets means that you are estimating the working……….of the asset.

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.

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.

The provisional profits may change as a result of error …………….

Errors are …………… using journal entries.