Answer Key
Vocabulary test
Drag & drop: Fill in the missing expression. Use the following words and phrases:
- long-term liability
- market value
- book value
- current liabilities
- current assets
- intangible asset
- balance sheet
- assets
- depreciation
- fixed assets
- On the other hand, the [book value] of an item, not accounting for depreciation, is simple to calculate – it is exactly what you paid for it when you bought it new.
- Company cars, copy machines, and computers are all examples of [fixed assets] .
- [Assets] are anything of value or use, and can even include the employees themselves.
- If you buy a new car, you should begin to calculate [depreciation] as soon as you drive it home, because it is no longer technically a new car any more, and not as valuable as it was before you bought it.
- A business development loan with a ten-year repayment period is an example of a [long-term liability] .
- The fact that consumers know and trust your products is an example of an [intangible asset] .
- Bills from suppliers, government taxes, and unpaid overhead costs (rent, for example), are all good examples of [current liabilities] .
- A company's bank accounts and stock portfolio represent its [current assets] .
- A good way to get a good idea of a company's relative health is to examine the information available on its [balance sheet] .
- The [market value] of an item depends on a variety of factors, such as the general state of the economy, where you decide to sell it, and who you try to sell it to, and will certainly vary from day to day.