Intangible assets such as copyrights, trademarks and patents are applicable for____________?
Correct answer: B. Amortization
- A. Depreciation
- B. Amortization
- C. Stock amortization
- D. Perishable assets
Explanation
The cost of a finite-life intangible asset is allocated over its useful life through amortization. Depreciation is normally used for tangible fixed assets, while indefinite-life intangibles are not amortized.
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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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