Using the straight-line method to amortize patents is an application of expense recognition using
A) cause and effect
B) a systematic and rational allocation over time
C) immediate consumption
D) the percentage-of-completion method

Question

Quizplus · Accepted Answer

The straight-line method of amortization spreads the cost of a patent evenly over its useful life, which is an application of expense recognition using a systematic and rational allocation over time.

Using the Straight-Line Method to Amortize Patents Is an Application