Using the straight-line method to amortize patents is an application of expense recognition using
A)association of cause and effect
B)a systematic and rational allocation method
C)immediate recognition
D)the percentage-of-completion method

Question

Quizplus · Accepted Answer

The straight-line method is a systematic and rational allocation method used for expense recognition. It evenly spreads the cost of the patent over its useful life. This method is used for expense recognition and does not involve association of cause and effect, immediate recognition, or the percentage-of-completion method.

Using the Straight-Line Method to Amortize Patents Is an Application