Which one of the following statements about amortization is correct? Amortization:
A)describes the process involved in estimating the residual value of a non-current asset.
B)describes the process of spreading the cost of an intangible non-current asset over the period of its useful life.
C)is always calculated on the reducing balance basis.
D)is the term used by management accountants instead of depreciation.

Question

Quizplus · Accepted Answer

Amortization is the process of spreading the cost of an intangible non-current asset over the period of its useful life. It is similar to depreciation, which applies to tangible non-current assets.

Which One of the Following Statements About Amortization Is Correct