Amortization Expense

question 122

Multiple Choice

Amortization expense:

• A) is the title of the expense associated with natural resources.
• B) is recorded for intangible assets with a finite life.
• C) is recorded for assets with an indefinite life.
• D) cannot be credited directly to the asset account.

---

Definitions:

Current Balance

The total amount of money in an account or owed on a loan at any given moment, including principal, interest, and any fees.

Interest Rate

The proportion of a loan or savings amount that is charged or paid as interest to the borrower or saver.

Compounded Monthly

The monthly exercise of determining interest by applying it to the initial principal amount as well as to the interest that has been accumulated over preceding periods.

Accrued Interest

Interest that has been incurred but not yet paid.