Which of the Following Statements About Amortization Deductions Is False

question 28

Multiple Choice

Which of the following statements about amortization deductions is false?

• A)Amortization deductions result in the recovery of the capitalized cost of an intangible asset.
• B)Amortization is computed ratably (on a straight-line basis)over the asset's determinable life.
• C)Amortization deductions reduce the tax basis of the amortized asset.
• D)None of the above is false.

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Definitions:

Budget Manual

A budget manual is an organized, documented set of procedures and guidelines that an organization uses to prepare its budgets, aiming to standardize the budgeting process.

Strategic Plans

Long-term goals and objectives of an organization, along with the action plan to achieve them, focusing on overall direction and long-term growth.

Cash Budget

A financial plan that outlines expected cash inflows and outflows over a specific period, including income and expenses.

Program Budgeting

A method of budgeting in which all expenses must be justified for each new period, focusing on programs and activities instead of traditional line items.