Which expense is associated with the use of patents?
A)Interest.
B)Amortization.
C)Cost of goods sold.
D)Depreciation.

Question

Quizplus · Accepted Answer

Patents are intangible assets that have a limited lifespan. The cost of acquiring a patent is amortized over its useful life, which is typically 20 years. This means that the expense associated with the use of patents is amortization, which is a non-cash expense that appears on the income statement.

Which Expense Is Associated with the Use of Patents