Which of the Following Is False

question 36

Multiple Choice

Which of the following is false?

• A)Amortization is a process of valuation.
• B)Amortization expense is the amortized amount for the current period only.
• C)Accumulated amortization is that portion of the property, plant, and equipment asset's cost that has already been recorded as an expense.
• D)Book value is cost less accumulated amortization.

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Definitions:

General Journal Entry

A record in the general journal that includes all the financial transactions of a company, showing accounts affected, amounts, and whether those amounts are debits or credits.

Amortizing

The process of gradually paying off a debt over time through regular payments.

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its useful life.

Semiannual Interest

An interest payment made twice per year on investment vehicles such as bonds, which represents a portion of the annual interest rate.