Q8. Fill in the blanks with the most appropriate term or terms. a) Often equity is referred to as the of the company. b) The _method of inventory valuation is the most common in Canada. c) Payment made by a company for services to be received in the near future are called c) Fixed assets are shown on the Statement of Financial Position at _cost, including installation and other acquisition expenses. e) Except for , fixed assets are depreciated each year and the total accumulated depreciation is deducted from the original cost. f) _is the term applied to writing down resource assets, and _is a term sometimes used to describe the writing off of intangible assets. g) The method applies a fixed percentage, rather than a fixed dollar amount, to the outstanding balance to determine the depreciation expense to be charged in each period. h) Annual allowances for depreciation and depletion appear as charges against revenue in the Statement of Comprehensive Income, and do not affect actual cash outflows. i) refers to the recording of an expenditure as an asset rather than as an expense. j) measured. _assets are assets which cannot be touched, weighed, or k) are debts incurred by a company in the ordinary course of its business which have to be paid within a short time - a year at the most. 1) The amount left over after payment of income taxes is called of which dividends may be paid to the shareholders. m) _refers to the principles and practices used for recording and reporting business transactions. out n) plus Retained earnings are calculated as the previous retained earnings balance less for the current Share capital increases if are issued. o) A company buys a truck for $50,000 with an expected salvage value of $10,000 and an expected life of 4 years. If it uses straight-line depreciation, the annual depreciation expense is . The Statement of Financial Position shows a value of the truck after 2 full years is p) Gross profit is calculated as sales minus . EBIT is an accounting acronym meaning q) Current assets are those which are expected to be turned into cash within