Which Statement Is True About Amortization

question 67

Multiple Choice

Which statement is true about amortization?

• A) Amortization is a cash expense that provides tax shield benefits.
• B) The lesser the amortization expenses in earlier years,the higher the present value of the project.
• C) The CCA amortization schedules supersede other methods for tax purposes.
• D) Amortization is a cash flow that represents the annual cost of an asset.

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Definitions:

Ore Mineral

Naturally occurring minerals from which metals or minerals of economic value can be extracted profitably.

Tectonic Plates

Large pieces of Earth's crust and uppermost mantle that move and interact with each other, driving geological activities like earthquakes and volcanoes.

Continental Crust

The thick part of the Earth's crust that forms the large landmasses, characterized by its granitic rock composition.

Oceanic Crust

The part of Earth's lithosphere that lies beneath ocean basins, composed mainly of basaltic rock and forming the outermost layer of the planet's structure.