According to Accounting Standards, the Method of Amortization Chosen Should

question 6

Multiple Choice

According to accounting standards, the method of amortization chosen should:

• A)measure the change in an asset's value.
• B)be systematic and rational.
• C)allocate the most of the asset's cost to the early periods benefiting from its use.
• D)recognize the reduced usefulness of an asset.

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Definitions:

Under-Exploited

Resources or opportunities not fully utilized or maximized to their potential benefit.

Market

A venue or mechanism through which parties engage in the exchange of goods, services, or financial instruments.

Unknown Quantity

A variable or value in a mathematical equation or problem that is not directly known but can be calculated or estimated.

Proportion

A subdivision, quota, or ratio analyzed in respect to its full size.