The Entry for Amortization Has What Effect on the Financial

question 75

Multiple Choice

The entry for amortization has what effect on the financial statements?

• A)increases assets and decreases liabilities
• B)decreases net income and increases assets
• C)increases expenses and decreases assets
• D)decreases assets and increases liabilities

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Definitions:

Denominated

Indicates the currency in which a financial transaction is specified or an investment is made.

Expected Return

The anticipated average return on an investment under normal conditions, taking into account both the probability of each outcome and the return of each outcome.

Portfolio

A collection of financial investments like stocks, bonds, commodities, cash, and cash equivalents, including mutual funds and ETFs.

Covariance

A measure used in statistics to determine how two variables move together, indicating the degree to which they are correlated.