What term describes the systematic allocation of the depreciable cost of an intangible asset over its useful economic life?
ADepletion
BAmortization
CImpairment
DDepreciation
Explanation
* Amortization systematically expensing intangible asset costs (patents, copyrights) over estimated useful life.
* Depreciation applies to tangible fixed assets (buildings, equipment).
* Depletion applies to natural resources (oil, timber).
Exam Relevance
- Topic: Financial Accounting
- Subtopic: Asset Accounting

No Comments