CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

What is the cost allocation procedure called for intangible assets?

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.
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