Which of the following methods of amortization is a company most likely to use for financial statement purposes if it purchases a patent?
A)capital cost allowance
B)double-declining-balance
C)units-of-activity
D)straight-line

Question

Quizplus · Accepted Answer

For financial statement purposes, a company is most likely to use the straight-line method of amortization when purchasing a patent. This is because it allows for equal amounts of amortization to be recognized over the useful life of the asset, resulting in a simpler and more straightforward presentation on the financial statements.

Which of the Following Methods of Amortization Is a Company