The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is

A) amortization
B) depletion
C) depreciation
D) allocation

Question

The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets isA) amortizationB) depletionC) depreciationD) allocation

sergio ortiz · Accepted Answer

Final Answer : A, Explanation :  Amortization is the process of gradually transferring the cost of an intangible asset to expense over its useful life due to a decline in its utility. Depletion is the process of transferring the cost of natural resources to expense as they are consumed. Depreciation is the process of transferring the cost of tangible assets to expense over their useful lives, and allocation is the process of assigning common costs to individual cost objects.

The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is

A) amortization
B) depletion
C) depreciation
D) allocation

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