Companies are not permitted to use amortization as an expense when calculating their income.

Question

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Companies are permitted to use amortization as an expense when calculating their income. Amortization is a non-cash expense that represents the gradual reduction in the value of intangible assets over time, such as patents or trademarks. By including this expense, companies can more accurately reflect the true cost of their operations and allocate resources accordingly.

Companies Are Not Permitted to Use Amortization as an Expense