Which of the following statements is true?
A)Depreciation allocates the cost of tangible assets over their useful lives.
B)Depreciation allocates the cost of intangible assets over their useful lives.
C)Amortization allocates the cost of tangible assets over their useful lives.
D)The term "depreciation" relates to all long-lived assets whereas "amortization" relates only to intangible assets.

Question

Quizplus · Accepted Answer

Depreciation is the method used to allocate the cost of tangible assets over their useful lives. Amortization, on the other hand, is the method used to allocate the cost of intangible assets over their useful lives. Therefore, options B, C, and D are incorrect.

Which of the Following Statements Is True