Which of the following terms is used to identify the expense recognition for intangible assets?
A)Allocation.
B)Depletion.
C)Depreciation.
D)Amortization.

Question

Quizplus · Accepted Answer

Amortization is the term used to identify the expense recognition for intangible assets, such as patents, trademarks, and copyrights. It is similar to depreciation for tangible assets and reflects the gradual decrease in the value of an intangible asset over its useful life. Allocation is a more general term referring to the apportionment of costs or revenues across different accounting periods or activities, while depletion is used for natural resources and depreciation is used for tangible assets.

Which of the Following Terms Is Used to Identify the Expense