Sonic Gateway Purchased $1,000 of App Software That Is Estimated

question 223

Multiple Choice

Sonic Gateway purchased $1,000 of app software that is estimated to have four years of usefulness.The adjusting entry to record the amortization includes a debit to ______ and a credit to:

• A) Amortization Expense; Accumulated Amortization
• B) Accumulated Amortization; Amortization Expense
• C) Depreciation Expense; Accumulated Depreciation
• D) Accumulated Depreciation; Depreciation Expense
• E) Software; Amortization Expense

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Definitions:

Payment

The transfer of money or goods from one party to another as compensation for goods, services, or to fulfill a legal obligation.

Check Clearing

The process by which banks exchange checks and settle funds, ensuring that the amount specified on the check is transferred from the payer's account to the payee's account.

Bank Time

A policy where employees can accumulate hours of work time to use at a later date, often for leave purposes.

Float

The time difference between when a bank transaction is initiated and when it is completed, allowing funds to appear available in the account before they actually are.