Hardware Deductions

Mr. Sanders: Mark can we talk for a moment?
Mark: Sure, Mr. Sanders. What would you like to discuss?

Mr. Sanders: I'd like to look into the Johnson account for a moment.
Mark: I did the bookkeeping yesterday and updated the balance sheet.

Mr. Sanders: Yes, I don't understand some of these deductions.
Mark: Do you mean the amortization costs?

Mr. Sanders: You deducted $35,000 for depreciation of hardware.
Mark: That's based on their accounting criteria. I got the amount from their bookkeeper.

Mr. Sanders: It seems too much to me.
Mark: Remember that computer equipment tends to depreciate faster than office furniture.

Mr. Sanders: I guess so. I'll take your word for it. Did they approve the balance?
Mark: Yes, it was OKed yesterday afternoon.

Mr. Sanders: The net growth looks fantastic this year.
Mark: It sure does! The bottom-line grew by 17%.

Key Vocabulary

to discuss
to look into something
bookkeeping
to update
balance sheet
amortization
cost
depreciation
hardware
accounting
bookkeeper
computer equipment
office furniture
balance
to take someone's word for something
to ok something
net growth
bottom-line

Check your understanding with this multiple choice comprehension quiz.

By Kenneth Beare, About.com Guide

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