When an Intangible Asset Is Amortized

question 68

Multiple Choice

When an intangible asset is amortized:

• A)stockholders' equity decreases.
• B)net income decreases.
• C)net assets decrease.
• D)all of the above.

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Definitions:

Bulk Sales Act

Legislation designed to protect creditors by requiring a business owner to notify them before making a large, non-ordinary sale of inventory.

Merchant

An individual or business entity engaged in the sale of goods, especially on a large scale or with foreign countries.

Grain

A small, hard, dry seed harvested from cereal plants or grasses, used for food.

Quantities

Refers to the specific amounts or numbers of items, often used in the context of purchases, manufacturing, or inventory.