Amortization Refers to the Systematic Transfer of Fixed Assets to Expense

question 45

True/False

Amortization refers to the systematic transfer of fixed assets to expense accounts.

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Definitions:

Asset Test

A measure used to evaluate a company's ability to meet its short-term liabilities with its most liquid assets.

Profit (Loss) Test

A financial assessment to evaluate the profitability or loss of a business operation or investment.

Return on Total Assets

A financial ratio that measures a company's profitability relative to its total assets.

Income Tax Expense

The amount of money that a company is required to pay to the government based on its taxable income.