The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is
A)allocation
B)depreciation
C)amortization
D)depletion

Question

Quizplus · Accepted Answer

Amortization is the term used to describe the systematic allocation of the cost of intangible assets (such as patents, trademarks, and copyrights) to expense over their useful lives. Depreciation and depletion are similar concepts but are used for tangible assets such as buildings and natural resources, respectively. Allocation is a general term that refers to the way in which costs are assigned to specific periods or activities.

The Term Applied to the Amount of Cost to Transfer