Choose the one word or phrase that best completes the sentence and fill in the appropriate answer above.
1-
The idea of depreciation is quite straightforward; for instance, a forklift is an operational asset for a company's business, and each year it loses a certain amount of value until at last it is ......... and has no value for the company.
A -
irreparable
B -
irreplaceable
C -
unrecognizable
D -
unreliable
2-
Calculating and ......... for this loss in value of such an asset is called depreciation.
A -
accounting
B -
applying
C -
disposing
D -
subtracting
3-
Almost all companies invest in vehicles, furniture, machinery or buildings, and those that will be used for more than one year are considered ......... assets.
A -
capital
B -
durable
C -
permanent
D -
sizeable
4-
However, the entire cost of such an asset cannot be ......... in the year it is acquired.
A -
deduced
B -
deducted
C -
reduced
D -
remaindered
5-
If a business reduced a single year's income by the total cost of such an asset, it would result in a profit understatement in that year and a profit overstatement during the ......... years.
A -
consequent
B -
continuous
C -
previous
D -
succeeding
6-
For assets that have a useful life of more than one year, the cost must be ......... off over at least two years.
A -
carried
B -
reduced
C -
stated
D -
written
7-
The yearly depreciation for an asset is calculated using its ......... cost and the number of years that it will presumably retain some value.
A -
formal
B -
gross
C -
initial
D -
list
8-
At the end of each year, the annual depreciation is subtracted from the asset's cost; this determines its ......... value, which presumably is the same as its market value.
A -
account
B -
actual
C -
book
D -
operational
9-
Straight ......... depreciation, the most common method of depreciating assets, simply divides the initial cost of an asset by the number of years that it will presumably be of use.
A -
ahead
B -
forward
C -
line
D -
measure
10-
The ......... balance method presumes that the asset depreciates more when it is newer and less as it ages and wears.