The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is
A) amortization
B) depletion
C) depreciation
D) allocation

Question

Quizplus · Accepted Answer

Amortization is the process of allocating the cost of intangible assets, such as patents or trademarks, over their estimated useful lives. As the asset's utility declines, the cost is gradually transferred from the asset account to the expense account. Depreciation and depletion are terms used for tangible assets, while allocation is a general term that can refer to any process of assigning costs to specific accounts or periods.

The Term Applied to the Amount of Cost to Transfer