The amortization of finite life intangibles is recorded as:
A) a debit to cost of goods sold and a credit to accumulated amortization.
B) a credit to accumulated amortization and a debit to the asset account.
C) a credit to accumulated amortization and a debit to amortization expense.
D) a debit to accumulated amortization and a credit to amortization expense.

Question

Quizplus · Accepted Answer

The correct accounting treatment for the amortization of finite life intangibles involves a debit to amortization expense (reflecting the expense on the income statement) and a credit to accumulated amortization (increasing the total amortization accumulated over time against the intangible asset on the balance sheet).

The Amortization of Finite Life Intangibles Is Recorded As