Asked by
Thelma Garcia
on Nov 13, 2024
Verified
The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization.
Amortization
The process of spreading the cost of an intangible asset over its useful life, recognizing a portion of the expense each accounting period.
Intangible Assets
Non-physical assets owned by a business that have value, such as intellectual property, brand recognition, and goodwill.
- Delineate the differences in accounting approaches between tangible assets and intangible assets, specifically in relation to amortization and the financial treatment of research and development costs.
Verified Answer
TH
Learning Objectives
- Delineate the differences in accounting approaches between tangible assets and intangible assets, specifically in relation to amortization and the financial treatment of research and development costs.
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