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What is Amortization?
17. What is Amortization?
- Accounting techniques are used to periodically lower the book value of a loan.
- Notable reduction in the utility of an inventory item or fixed asset.
- Accrual accounting technique used to allocate the cost of extracting natural resources
- The loss in the physical efficiency of an asset as it ages.
Answer: A) Accounting techniques are used to periodically lower the book value of a loan.
Explanation:
Amortization is a bookkeeping method used to occasionally bring down the book worth of credit or an immaterial resource throughout a set timeframe. Concerning an advance, amortization centres around fanning out advance instalments over the long haul. When applied to a resource, amortization is like deterioration.