Amortization Is the Concept That Applies to The

question 95

Multiple Choice

Amortization is the concept that applies to the:

• A)expensing of long-term assets that lack physical substance over their useful lives.
• B)depreciation of prepaids and supplies as they are used.
• C)recording of amounts collected in advance that have not yet been earned.
• D)recording of Deferred revenue in the period cash is collected in advance of being earned.

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Definitions:

Manufacturing Business

An enterprise engaged in the industrial production of goods from raw materials or components, using various processes like assembling, fabricating, or processing.

Computer Desks

Furniture designed specifically to comfortably and ergonomically accommodate computers and related equipment for use in homes or offices.

Profitability

The ability of a business to generate earnings compared to its expenses and other relevant costs incurred during a specific period of time.

Distribution Channel

The pathway through which goods and services travel from the producer to the consumer, including any intermediaries such as distributors, wholesalers, and retailers.