Which of the following is a key difference between depreciation and amortization?
A) Amortization is applicable for long-term assets, whereas depreciation is applicable for short-term assets.
B) Depreciation applies to tangible assets, whereas amortization applies to intangible assets.
C) Amortization is calculated for liabilities, whereas depreciation is calculated for assets.
D) Amortization is calculated for assets, whereas depreciation is calculated for liabilities.
E) Depreciation is applicable for long-term assets, whereas amortization is applicable for short-term assets.

Question

Quizplus · Accepted Answer

A)Depreciation refers to the cost of a tangible long-term asset over a period of time and is a way that companies match expenses with revenue. For intangible assets, this allocation over time is known as amortization.
B)Depreciation refers to the cost of a tangible long-term asset over a period of time and is a way that companies match expenses with revenue. For intangible assets, this allocation over time is known as amortization.
C)Depreciation refers to the cost of a tangible long-term asset over a period of time and is a way that companies match expenses with revenue. For intangible assets, this allocation over time is known as amortization.
D)Depreciation refers to the cost of a tangible long-term asset over a period of time and is a way that companies match expenses with revenue. For intangible assets, this allocation over time is known as amortization.
E)Depreciation refers to the cost of a tangible long-term asset over a period of time and is a way that companies match expenses with revenue. For intangible assets, this allocation over time is known as amortization.

Which of the Following Is a Key Difference Between Depreciation