The most important objectives for amortization expense are valuation and
A)accuracy.
B)classification.
C)cutoff.
D)understandability.

Question

Quizplus · Accepted Answer

Amortization expense must accurately reflect the decline in value of the asset being amortized over its useful life. Valuation is therefore the most important objective for amortization expense. Classification, cutoff, and understandability are also important objectives for financial statements in general, but are not as directly relevant to the specific purpose of calculating and reporting amortization expense.

The Most Important Objectives for Amortization Expense Are Valuation and