An annual estimated cost of assets uses up every year is included__________?
Correct answer: A. Depreciation and amortization
- A. Depreciation and amortization
- B. Net sales
- C. Net profit
- D. Net income
Explanation
Depreciation and amortization allocate the cost of long-term assets over the periods in which they are used. Depreciation applies mainly to tangible assets, while amortization usually applies to intangible assets.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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