What Is the Accounting Entry to Amortise an Intangible Asset

question 56

Multiple Choice

What is the accounting entry to amortise an intangible asset over its useful life?

• A) Debit amortisation expense; credit asset
• B) Debit accumulated amortisation; credit amortisation of asset
• C) Debit amortisation expense; credit accumulated amortisation
• D) Debit amortisation expense; credit accumulated depreciation

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit; a percentage of the cost price.

Breakeven

A financial situation where revenue equals costs, resulting in neither profit nor loss.

Mark-up

The margin calculated by subtracting the cost of a product or service from its sale price, then dividing by the cost, expressed as a percentage.

Retail Price

The price at which goods are sold to the public, typically higher than the wholesale price.