Examlex
Three of the following alternatives describe instances of transfer that are likely to occur. Which scenario is least likely?
Amortization
The process of gradually reducing the cost of an intangible asset through scheduled charges to expense over its useful life.
Indirect Method
A technique used in cash flow statement preparation that adjusts net income for changes in non-cash accounts to calculate cash flow from operating activities.
Depreciation
The systematic allocation of the cost of a tangible asset over its useful life, reflecting the asset's consumption, wear and tear, or obsolescence.
Accrued Expenses
Expenses that have been incurred but not yet paid, representing liabilities on the balance sheet.
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