Asked by Margaret Everett on May 16, 2024
Verified
The allocation of the cost of a intangible asset is known as:
A) depreciation.
B) depletion.
C) amortization.
D) accrual.
Intangible Asset
An asset that lacks physical substance and is identifiable as a non-monetary asset without physical substance.
Amortization
The process of gradually paying off debt or spreading the cost of an intangible asset over its useful life.
- Familiarize with the treatment of intangible assets in accounting, including aspects of amortization, impairment, and write-offs.
Verified Answer
CL
Chris LogsdonMay 22, 2024
Final Answer :
C
Explanation :
The allocation of the cost of an intangible asset over its useful life is known as amortization.
Learning Objectives
- Familiarize with the treatment of intangible assets in accounting, including aspects of amortization, impairment, and write-offs.