Anh văn chuyên ngành 2 - AC11 (92)

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

The provision for doubtful debt is never adjusted.

Any debts written off are a/an …………of the business.

Debts may be written off at……………times throughout the year.

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.

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.

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.