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4.1. What kind of asset is each of the following? Which three are not assets?

1. Vans which a delivery company owns and uses to deliver goods.

2. Vans for sale in a showroom.

3. A showroom owned by a company that sells vans. 4. A showroom rented by a company that sells cars.

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5. Money which customers owe, that will definitely be paid in the next 60 days.

6. Money which a bankrupt customer owes, that will cer-tainly never be paid.

7. The client list of a successful training company, all of which are successful businesses.

8. The client list of a training company, with names of cli-ents that have all gone bankrupt.

4.2. Use the correct forms of words in brackets to complete these sentences:

1. The bank had lent too much and was left with a mountain of bad debts: £4.3 billion was … (write off / wrote off / written off) last year.

2. Most highway building programs in the US are … (amor-tization / amortize / amortized) over 30 years or more.

3. The company reported a record income of $251.2 million, after a $118 million … (charge / charged / charges) for reduction in the … (book value / books value / booked value) of its oil and gas properties.

4. Under the new law, businesses face five different … (de-preciate / depreciation / depreciations) rules for different types of equipment.

5. The company reported a loss of $12.8 million, partly to a special charge of $1.5 million to … (write down / wrote down / written down) the value of its spare parts inventory.

4.3. Complete the assets table for a uk company with the expressions from the text above, and the relevant figures, using the following information:

Paradigm has goodwill, in the form of hundreds of satis-fied customers, worth an estimated £15,000. This is its only intan-gible asset.

It has investments of £6,000 in other companies.

It has raw materials, unfinished goods and finished goods together worth £3,500.

It owns equipment and machinery with a book value of £9,000.

It owns land with a book value of £31,000.

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It has £11,000 in its accounts at the bank.

It owns offices and factories with a book value of £94,000.

Various people and organizations, including customers, owe £7,500.

Paradigm Manufacturing Balance sheet at 31 March 20__ ASSETS

Cash

6,000

Total current assets

28,000

94,000

Total fixed assets (book value)

134,000

Total intangible assets

15,000

TOTAL ASSETS

177,000

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