For Each of the Following Accounts,indicate What Event Causes the Account

question 151

Essay

For each of the following accounts,indicate what event causes the account to increase and to decrease.The answer is not debit or credit.

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Definitions:

Intangible Assets

Non-physical assets owned by a business that can produce future economic benefits, such as intellectual property, goodwill, and licenses.

Expected Useful Life

It refers to the estimated duration a fixed asset is expected to be economically useful to the owner, beyond which it is considered to depreciate.

Amortized

The process of spreading the cost of an intangible asset over its useful life, or the reduction of debt through regular payments of principal and interest over a set period.

Accumulated Amortization

The total amount of amortization expense that has been applied to intangible assets over time, reducing their book value on the balance sheet.