Accumulated amortization represents the cash set aside for the replacement of assets.

Name: Accumulated amortization represents the cash set aside for the replacement of assets.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accumulated amortization represents the total amount of depreciation that has been charged to the assets over their useful life. It is not set aside as cash for replacement of assets; rather, it is a contra asset account that reduces the carrying value of the asset on the balance sheet.

Accumulated Amortization Represents the Cash Set Aside for the Replacement