The Process of Allocating the Cost of Intangible Assets to Expense

question 26

True/False

The process of allocating the cost of intangible assets to expense is called amortization.

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Definitions:

Internal User

individuals within an organization who use financial information to make decisions, including managers and employees.

Accounting Data

Information and records relating to the financial activities of a business, including transactions, balances, and other financial statements.

Labour Union

An organization that represents the collective interests of workers in negotiations with employers over wages, working conditions, and other employment terms.

Net Income

Net income is the total profit of a company after all expenses, taxes, and costs have been subtracted from total revenue.