When a Company Records Amortization Expense It Debits

question 64

Multiple Choice

When a company records amortization expense it debits:

• A)liabilities and credits expenses.
• B)expenses and credits cash.
• C)expenses and credits a contra-asset account.
• D)long-lived assets and credits expenses.

Understand the relationship between profit margin and financial performance indicators.

Identify the need for and the impact of corrections on financial statements through adjusting entries.

Understand different types of outcomes and their contexts in a business environment.

Recognize various types of data (nominal, ordinal, interval, ratio) and their characteristics.

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Definitions:

Photosynthesis

The process by which green plants and some other organisms use sunlight to synthesize nutrients from carbon dioxide and water, generating oxygen as a byproduct.

Species Diversity

The variety of different species of animals, plants, fungi, and microorganisms that exist within a particular ecological community or ecosystem.

Deforestation

The removal of a forest or stand of trees where the land is thereafter converted to a non-forest use such as agriculture or urban development.

Carbon Dioxide

A colorless, odorless gas produced by burning carbon and organic compounds and by respiration, considered a greenhouse gas contributing to global warming.