The Entry to Record Amortization of the Acquisition Cost of an Intangible

question 92

True/False

The entry to record amortization of the acquisition cost of an intangible asset includes a credit directly to the intangible asset account.

---

Definitions:

Temporary Accounts

Temporary Accounts are categories in accounting that are used to track financial transactions for a specific period, being reset or closed at the end of the fiscal year.

Income Summary

A temporary account used in accounting to aggregate all income and expense accounts for a period, facilitating the transfer of their balances to permanent equity accounts.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.

Income Summary

A temporary account used in closing process to summarize the results of a period's revenues and expenses.