The Balance Sheet 2 : Assets

The Balance Sheet 2 : Assets


Mayra Alejandra Piñeros Roa

Lorena Martinez

Johanna Molina Castaño

4BN

12.1 Find words and expressions in A, B and C opposite with the following meanings.

1. An amount of money that is owed but probably won't be paid.

R. A, bad debt

2. The accounting value of a company (assets minus liabilities)

R. C, its net worth

3. A legal right to produce and sell a newly invented product for a certain period of time.

R. C, patents

4. The historical cost of an asset minus depreciation charges.

R. C, historical cost

5. The amount a company pays for another one, in excess of the net value of its assets.

R. C, goodwill

6. A legally protected word, phrase, symbol or design used to identify a product.

R. C, trade marks

7. To accept that a debt will not be paid.

R.A, it has to anticipate the loss

8. To deduct money from profits because of debts that will not be paid.

R. A, deducting the amount of the debt from the year's profits.

9. Products that are not complete or ready for sale.

R. B, work-in-progress-partially manufactured products

10. The amount of money owed by customers who have bought goods but not yet paid for them

R.A, debtors

12.2. Match the two parts of the sentences. Look at A, B and C opposite to help you.

1. A company's value on the stock exchange is nearly always.

e. Higher than the value of its net assets.


2. Brand names, trade marks, patents, customers, and qualified staff.

b. Are examples of intangible assets.


3. Cash, money owed by customers, and inventory.

a. Are current assets-.


4. Companies record inventory at the cost of buying or making the items,

f. or the current market price, whichever is lower.


5. Companies write off bad debts, and make provisions.

d. By deducting the amount from profits.


6. Land, buildings, factories and equipment.

c. Are examples of tangible, fixed assets.

12.3 Sort the following into current, fixed and intangible assets. Look at A an C opposite to help you.

Buildings cash in the bank debtors

Goodwill human capital investments

Stock land reputation



Current assets          Fixed assets       Intangible assets

-cash in the bank     - investments      - reputation

-debtors                  - land                 - human capital

- Stock                - Buildings             - Goodwill



Over to you

Think about the company you work for, or your place of study. What are is most valuable assets? Are they shown on the balance shee ?

The most valuable assets are the current account, and are what you're available on short notice, and are shown in the balance because they are a fundamental part of the assets of the company