Under the Indirect Method,amortization Expense Would Be

question 45

Multiple Choice

Under the indirect method,amortization expense would be:

• A) added to net income in the operating activities section
• B) subtracted from net income in the operating activities section
• C) added to net income in the financing activities section
• D) added to net income in the investing activities section

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Definitions:

Goods and Services

The output produced by a society, including tangible products (goods) and intangible items (services) that fulfill human wants or needs.

Capital

Economic resource that is used to produce goods and services, including buildings, machinery, and equipment.

Financial Assets

Resources having economic value that are held by an individual or corporation, primarily including stocks, bonds, and cash equivalents.

Entrepreneur

A profit-seeking decision maker who starts with an idea, organizes an enterprise to bring that idea to life, and assumes the risk of the operation