What is the accounting entry to amortise an intangible asset over its useful life?
A) Debit amortisation expense; credit asset
B) Debit accumulated amortisation; credit amortisation of asset
C) Debit amortisation expense; credit accumulated amortisation
D) Debit amortisation expense; credit accumulated depreciation

Question

Quizplus · Accepted Answer

The accounting entry to amortise an intangible asset over its useful life is to debit amortisation expense and credit accumulated amortisation. This correctly reflects the usage of the intangible asset over time while reducing the carrying value on the balance sheet. Option A and D are incorrect as these accounts are used for tangible assets, and option B is incorrect as it shows a double credit entry.

What Is the Accounting Entry to Amortise an Intangible Asset