passwella.
Menu

WAEC Financial Accounting 2009 Question 5

Question 5

Depreciation

The reduction in value of an intangible asset is

  1. A.depletion
  2. B.depreciation
  3. C.amortization
  4. D.appreciation
Show the answer and explanation

Answer: C (amortization)

Explanation

Writing off the cost of an intangible asset such as goodwill or a patent is called amortisation; depletion is for wasting assets like mines.