TRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.

TRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10Q: Explain the differences between the process of amortizing intangible assets and the process of...

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The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.

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The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization. True False
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Explain the differences between the process of amortizing intangible assets and the process of depreciating tangible assets.
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TRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.
Income earned from incidental operations before an asset is put to use is: deducted from the cost of the asset added to the cost of the asset immediately recognized in P/L together with related expense ignored
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The cost of a depreciable asset is referred to as the