________ refers to writing off the cost of intangible assets like patents, copyrights, trademarks, franchises, and goodwill which have utility for a specified period of time.
Amortisation
The correct answer is option 4. Amortisation refers to the process of writing off the cost of intangible assets such as patents, copyrights, trademarks, franchises, and goodwill over their useful life. Unlike depreciation (which is for tangible assets), amortisation applies to intangible assets that provide value over a specific time period.
Important Questions from Depreciation, Reserve & Provision
Which of the following statement is FALSE in relation to the term depreciation?
Which of the following statement is FALSE?
Which of the following statement is NOT TRUE in regard to reserve and provision?
Provision is _______ against profit.
Match the following.
I. Depreciation
II. Unexpired expenses
III. Interest on capital
IV. Manager’s commission
1. Shown on assets side
2. Shown on debited side
3. Deducted from values of assets
4. Shown as addition to capital
