Which of the Following Statements About Accumulated Amortization Is NOT

question 24

Multiple Choice

Which of the following statements about accumulated amortization is NOT true?

• A)It is calculated in accordance with the matching principle.
• B)It records the portion or how much of the asset has been used up.
• C)It is reflected on the balance sheet.
• D)It helps determine how much an asset can be sold for.

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Definitions:

Legal Owner

The person or entity that has legal title to property, assets, or securities, holding official ownership rights.

Legal Ownership

The recognized right under the law of a person or entity to possess, use, and dispose of a particular property or asset.

Acceptance

A key factor in the agreement element of a contract; consists of the agreement of one party, the offeree, to the terms of the offer in the contract made by the other party, the offeror.

True Value

The actual, intrinsic value of an asset, investment, or property, considering all underlying factors.