Which of the Following Types of Expenses Result from a Decline

question 38

Multiple Choice

Which of the following types of expenses result from a decline in the utility of an intangible asset?

• A) Depreciation
• B) Depletion
• C) Obsolescence
• D) Amortization

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Definitions:

Deferral Method

An accounting method where certain revenues or expenses are deferred on the balance sheet until they can be realized in the income statement.

Not-for-profit Organization

An organization that operates for purposes other than generating profit, typically focusing on social, educational, or charitable objectives.

Endowment Contribution

A donation made to an organization, often a nonprofit or educational institution, with the stipulation that the principal amount is to be kept intact while the investment income generated is used for specific purposes.

Unrestricted Contribution

Donations made to a not-for-profit organization without specified restrictions, allowing the organization to use the funds for any purpose.