Amortization Is

question 60

Multiple Choice

Amortization is:

• A)The systematic allocation of the cost of an intangible asset to expense over its estimated useful life.
• B)The process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use.
• C)The process of allocating the cost of natural resources to periods when they are consumed.
• D)An accelerated form of expensing an asset's cost.
• E)Also called depletion.

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Definitions:

Price Floor

A government-imposed minimum price that can be charged for a good or service, intended to prevent prices from dropping too low.

Consumer Surplus

The differentiation between what consumers are prepared to expend on a good or service and the sums they actually do.

Supply Curve

An illustrated chart that demonstrates how the supply quantity relates to a good's price.

Producer Surplus

The discrepancy between what sellers are prepared to accept for a commodity and the real payment they secure from selling it at the prevailing market price.