What Is the Term for the Systematic Allocation of the Costs

question 53

Multiple Choice

What is the term for the systematic allocation of the costs of intangible assets to expense?

• A) Amortization
• B) Depreciation
• C) Impairment
• D) Depletion

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Definitions:

Adjusted

Modified or changed to correct or alter a previous situation, figure, or account.

Net Operating Income

A measure of a company's profitability, calculated by subtracting operating expenses from operating revenue, excluding taxes and interest.

Raw Materials Account

An account used to track the cost of raw materials not yet used in production in a company's inventory.

Ending Balance

The amount of money remaining in an account at the conclusion of a time period, after all additions and subtractions have been accounted for.