The Write-Off of the Cost of an Intangible Long-Term Asset

question 54

True/False

The write-off of the cost of an intangible long-term asset is called depreciation.

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Definitions:

Liability

A financial obligation or amount owed by a business to another entity, which is expected to be settled in the future.

Capital

The wealth, either financial or tangible, that is used in the creation of more wealth, such as money or assets owned by an individual or organization.

Ledger

A comprehensive accounting book that keeps track of all financial transactions systematically.

Financial Statements

Documents that outline the financial activities and condition of a business, including the income statement, balance sheet, and cash flow statement.