7.4　Long-term Investment

Long-term investments are resources that can be realized in cash just like current assets.However，the conversion into cash is not expected within one year or the operating cycle，whichever is longer.In addition，long-term investments are not intended for use or consumption within the business.This category，often just called“investments”，normally includes stocks and bonds of other corporations.

Words＆Expressions

7.1

long-term长期的

permanent永久的，永远的

tangible asset有形资产

be intended for为……所用

be capable of能做……

acquire for要求

be classified as被分为……类

fixed asset固定资产

regardless of不顾……

descriptive描述性的

property财产

be subdivided into再次被分为……类

driveway车道

parking lots停车场

fence围栏

underground sprinkler system地下喷水系统

warehouse仓库

check out counter结账台

cash register收款机

cooler空调

office furniture办公家具

factory machinery工厂机器

delivery equipment运输设备

unlimited无限的

improvement进展

manner方式;举止

periodic周期的

expiration过期

depreciation折旧，损耗

decline下降

category类型

wear and tear磨损

functional depreciation功能损耗

inadequacy不足

obsolescence过时

obsolete过时的，过期的

no longer不再

acquisition取得

subsequent随后的

worn-out磨损的，用旧的

outdated facilities过期设施

expand扩大;增加

productive生产性的

7.2

vehicle车辆

occur发生

a potion of一部分

estimate估计

be of service能为……所用

be used up用完

be treated as把……当……对待

at a cost of花费

estimated service life预估使用寿命

charge收费

convert改变

be relevant to与……相关

the original cost历史成本

residual value残值

calculate计算

units-of-production depreciation单位产品折旧

straight-line depreciation直线折旧

accelerated depreciation加速折旧

7.3

intangible assets无形资产

physical attributes物质属性;实物形态

in the operations of a business在企业

经营活动中

patent专利

copyright版权

trademark商标

goodwill商誉

privilege特权

granted by由……授予

authority权威性;权威

principle原则;原理;准则

the initial cost期初成本

the periodic cost expiration期间成本到期(分摊)

amortization摊销

in a broad sense广义上来说

receivables应收款项

financial asset金融资产

equity investments股权投资

take a narrow sense从狭义上来说

7.4

the operating cycle经营周期

in addition此外

consumption消耗

stocks and bonds股票和债券

Notes

1.Fixed assets are long-term or relatively permanent tangible assets that are used in the normal business operations and are not intended for sale to customers.固定资产是指在企业日常经营活动中长期或相对稳定的有形资产，它们一般不会被卖给客户。该句为主系表结构。表语中带有一个由that引导的定语从句，修饰先行词assets;that在该定语从句中起主语作用，并带有两个并列谓语，即are used in和are not intended for

2.But long-term assets acquired for resale in the normal course of business are not classified as fixed assets，regardless of their nature of the length of time they hold.而在正常的商业周期中，被用于销售的长期资产不归为固定资产，无论其持有期有多长。该句的主语是long-term assets，此主语带有一个过去分词短语作定语，补充说明主语的内容，谓语为are not classified as，宾语由fixed assets担任。该主谓宾结构带有一个由regardless of引起的介词短语作状语，修饰整个句子。

3.A fixed asset is obsolete if the item that it produces is no longer in demand or if a newer machine can produce an item of better quality at the same or lower cost.如果固定资产生产的产品不再为人们所需要或者一个新的机器能够用相同或更低的成本生产出质量更好的产品，那么这个固定资产就过时了。该句为主系表结构，并带有两个由if引导的条件状语从句。在if引导的第一个条件状语从句中，又含有一个由that引导的定语从句，修饰item。

4.Intangible assets are long-term assets that are without physical attributes and not held for sale but are useful in the operations of a business.无形资产是指不具有实物形态并且不用于销售的长期资产，它在企业经营活动中起很大作用。主句为主系表结构，其表语部分long-term assets带有一个由关系代词that引导的定语从句，该定语从句中有三个并列的谓语，即:①that are without②and(are)not held for sale③but are useful in

5.Their value to an enterprise is generally derived from the rights or privileges granted by governmental authority.它们对公司的价值一般来自于官方授予的权利或特权。该句为简单句。be derived from为固定搭配，意为“由……而来，源自”。句中过去分词短语granted by起定语作用，修饰前面的rights or privileges。

Exercises

Section 1:Know the Concepts

1.Classify each of the following statements as True or False.

(1)A leasehold is an example of a long-life asset.

(2)Depreciation expense is usually recorded at least once a year.

(3)Two methods of recognizing accelerated depreciation are the straight-line and the double-declining balance method.

(4)Amortization is the conversion of the cost of an intangible asset to an expense.

(5)Research and development costs represent an intangible asset.

(6)Repair of a generator is a capital expenditure.

2.Translate the following terms into Chinese.

(1)accelerated depreciation

(2)book value

(3)capital expenditure

(4)obsolescence

(5)patent

(6)physical deterioration

(7)copyright

(8)residual value

(9)straight-line method

(10)double-declining balance method

(11)sum of the years'digits method

(12)fixed asset

(13)trademark

(14)goodwill

Section 2:Practical Application

1.An asset is acquired at the beginning of the accounting period at a total cost of$7，850.It is expected to have a useful life of 5 years and a scrap value of $350.

Determine:

The annual rate of depreciation using the straight-line method.

The depreciable value of the asset.

The amount of annual depreciation expense to be recognized.

The total depreciation recognized after the third year.

The net asset value after recognizing 3 years of depreciation.

2.A van is acquired by the Acme Delivery Service at a cost of$15，600.The expected salvage value is$600，and the useful life as expressed in mileage is estimated to be 150，000 miles.Using the units of production method answer the following questions:

(1)What is the depreciable value of the van?

(2)What is the rate of depreciation per mile?

(3)What is the adjusting entry for the first year's depreciation if the van is driven 23，200 miles?

(4)What is the balance in the accumulated depreciation account after the van has been driven for 65，400 miles?

(5)What is the book value of the van，given the information in question(4)?

3.A factory is acquired on January 3 at a cost of$325，000 and has an estimated useful life of 25 years.Assuming that it has no residual value，determine the depreciation for each of the first 2 years by(1)the straight-line method，(2)the double-declining balance method，and(3)the SYD method.

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