For each item listed below, indicate the allocation terminology for the item. Use the following terms for your answer:

Business

1 answer:

nexus9112 [7]4 years ago

8 0

For each item listed the allocation terminology for the items are as follows:

Amortization: Copyrights, Patents, Trademarks and Annual licensing fees.

Depreciation: Buildings, Equipment and Land Improvements.

Depletion: None.

None of these: Land, Research and Development Costs and Franchises.

Explanation:

Throughout accounting, amortization applies to multiple-period distribution of revenues. The concept is used for two isolated processes: loan amortization and asset amortization. Depreciation is the reduction in asset value and the process used to redeploy or "write down" a tangible asset's expense (like equipment) over its expected life period.

Depletion is a term of accounting and taxation generally used in coal, forestry, petroleum, or other related industries. Depletion is identical to depreciation in that it is an accounting and tax tracking system for cost recovery.

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