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Questions and Answers
Charging amortization allows a business to accumulate the cost of tangible current assets over time.
Charging amortization allows a business to accumulate the cost of tangible current assets over time.
False (B)
Amortization is a method used by businesses to allocate the expense of intangible non-current assets over multiple accounting periods.
Amortization is a method used by businesses to allocate the expense of intangible non-current assets over multiple accounting periods.
True (A)
Non-current assets are not subject to amortization in financial statements.
Non-current assets are not subject to amortization in financial statements.
False (B)
Intangible assets are always amortized in equal installments over their useful life.
Intangible assets are always amortized in equal installments over their useful life.
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The purpose of amortization is to reflect the consumption of intangible assets in financial statements.
The purpose of amortization is to reflect the consumption of intangible assets in financial statements.
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