The Type of Account and Normal Balance of Accumulated Amortization

question 89

Multiple Choice

The type of account and normal balance of accumulated amortization is:

• A)liability; credit.
• B)asset; debit.
• C)contra asset; credit.
• D)contra asset; debit.

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Definitions:

Rate of Return

The gain or loss on an investment over a specified period, expressed as a percentage.

Short-term Borrowings

Loans or financial obligations that are due for repayment within a short period, typically less than a year.

Fiscal Year

A one-year period used for financial reporting and budgeting by companies and governments, which may not align with the calendar year.

Depreciation Rate

The percentage at which an asset is depreciated each period, often used to allocate the cost of an asset over its useful life.