Match each statement with the correct term below.
-Amortization
A)Trucks, and passenger automobiles.
B)Used to recover the investment in intangible assets.
C)Used to recover the investment in long-lived tangible business-use assets.
D)An attempt to stimulate capital investment by small businesses.
E)Used to recover the investment in assets that waste away through extraction.

Question

Quizplus · Accepted Answer

Amortization is the process of spreading out a loan into a series of fixed payments over time, but in accounting, it also refers to the practice of expensing the cost of an intangible asset over its useful life. This is why it is associated with recovering the investment in intangible assets.

Match Each Statement with the Correct Term Below