Which of the Following Terms Is Used to Identify the Expense

question 84

Multiple Choice

Which of the following terms is used to identify the expense recognition for intangible assets?

• A)Allocation.
• B)Depletion.
• C)Depreciation.
• D)Amortization.

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Definitions:

COGS

Stands for Cost of Goods Sold, which represents the direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cash Cycle

The cash cycle measures the time it takes for a company to convert its inventory and other resources into cash flows from sales, indicating the efficiency of a company's cash management.

First Quarter

Typically refers to the first three months of a financial year, used as a reporting period by businesses and other organizations.

Operating Cycle

The duration between a company's purchase of inventory and the receipt of cash from accounts receivable, reflecting the efficiency of a company's cash flow.