Depreciation bingo

Exercise and reference answers

Clues and terms

1. Clue

   Part of a fixed asset's cost written off.

   Item

   Depreciation

2. Clue

   Value lost because newer models appear.

   Item

   Obsolescence

3. Clue

   Method charging an equal amount yearly.

   Item

   Straight line

4. Clue

   Method charging on the reducing balance.

   Item

   Written down

5. Clue

   Amount charged against profit for a known cost.

   Item

   Provision

6. Clue

   Profit retained to strengthen the business.

   Item

   Reserve

7. Clue

   Asset held for use over several years.

   Item

   Fixed asset

8. Clue

   What depreciation is, in accounting terms.

   Item

   Expired cost

9. Clue

   Loss of value through ordinary use.

   Item

   Wear and tear

Instructions

Read each clue and tap the term it describes.

Explanation