The write-off of the cost of an intangible asset is called
A) physical depreciation.
B) functional depreciation.
C) amortization.
D) deterioration.

Question

Quizplus · Accepted Answer

The write-off of the cost of an intangible asset is called amortization. This is because intangible assets, such as patents or trademarks, are not physical in nature and do not depreciate like tangible assets. Instead, their cost is spread out over their useful life through the process of amortization.

The Write-Off of the Cost of an Intangible Asset Is