Question

Amortization:
A) Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life.
B) Is the process of allocating to expense the cost of a plant asset to the accounting periods benefiting from its use.
C) Is the process of allocating the cost of natural resources to periods when they are consumed.
D) Is an accelerated form of expensing an asset's cost.
E) Is also called depletion.

Answer 1

Answer:

A) Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life

Explanation:

Amortization is the spreading of the cost of an intangible asset to expense it over it's useful life.

Amortization is typically expensesd using the straight line method.

Amortization is used to expense the cost of intangible assets over its useful life.

Depreciation is used to expense the cost of tangible assets over its useful life.

Depletion is used to expense the cost of natural resouces over its useful life.