- CFA Exams
- CFA Level I Exam
- Topic 3. Financial Statement Analysis
- Learning Module 23. Long-lived Assets
- Subject 2. Intangible Assets
CFA Practice Question
What is the cost allocation procedure called for intangible assets?
B. Depletion
C. Amortization
A. Depreciation
B. Depletion
C. Amortization
Correct Answer: C
Amortization is the cost allocation procedure for intangible assets such as patents, copyrights, trademarks, franchises, and licenses.
User Contributed Comments 5
| User | Comment |
|---|---|
| stranger | a. for long term assets b. for natural resources c. for intangible assets |
| haarlemmer | Depletion is about natural resources, I think. |
| danlan | a is for tangible assets |
| freda | Goodwill is no longer amortised. It is tested every year for impairment. |
| jonan203 | if the earth ever runs out of oil, we would have DEPLETED our primary source of energy... anything you can only use ONCE, is subject to depletion; time, oil, gas, gold reserves, silver reserves, cattle, pork, sugar, etc. |