Multiple choice

Amortization refers to

  1. the decrease in value of a fixed asset due to its use.

  2. exhaustion of natural resources such as oil, coal, iron etc.

  3. writing off intangible assets such as patents, copyrights, franchise etc.

  4. None of these.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The writing off intangible assets such as patents, copyrights, leasehold mines etc is known as amortization.

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