GAAP requires that, when recording amortization expense, the credit must always be made to a contra asset account, rather than directly to the asset account.

Name: GAAP requires that, when recording amortization expense, the credit must always be made to a contra asset account, rather than directly to the asset account.
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Question

Quizplus · Accepted Answer

GAAP allows for amortization expense to be recorded either by crediting the asset account directly or by using a contra asset account, depending on the company's accounting policy.

GAAP Requires That, When Recording Amortization Expense, the Credit Must