Amortization:
A) Is the systematic allocation of the cost of an intangible asset to expense over its estimated useful life.
B) Is the process of allocating to expense the cost of an item of property, plant and equipment to the accounting periods benefiting from its use.
C) Is the process of allocating the cost of natural resources to periods when they are consumed.
D) Is an accelerated form of expensing an asset's cost.
E) Is also called depletion.

Question

Quizplus · Accepted Answer

Amortization specifically refers to the systematic allocation of the cost of an intangible asset over its useful life. This process is distinct from depreciation, which applies to tangible assets, and depletion, which applies to natural resources.