Different amortization techniques can result in different net income for a firm.

Question

Quizplus · Accepted Answer

Different amortization techniques can affect the amount of expenses recorded in each accounting period, thereby affecting the net income reported by the firm. For example, using straight-line amortization versus accelerated methods will result in different amounts of expenses being recognized in each accounting period, which will impact the reported net income.

Different Amortization Techniques Can Result in Different Net Income for a Firm