Amortization is not recognized until the asset is in its intended condition and location and is contributing to revenue.

Question

Quizplus · Accepted Answer

This statement is true. Amortization is recognized when the asset has reached its intended condition and location and is being used to generate revenue for the company. Until that point, the asset is considered to be in a pre-operating stage and is not eligible for amortization.

Amortization Is Not Recognized Until the Asset Is in Its