1 amortization is a process of asset valuation 2 with respect to amortization a busi 4300920

 

1) Amortization is a process of asset valuation.

2) With respect to amortization, a business should match an asset's expense against the revenue the asset produces.

 

3) Book value is determined by subtracting the residual value from the cost of an asset.

 

4) Double-declining-balance amortization computes annual amortization by multiplying the asset's book value by two times the straight-line rate.

 

5) Using the double-declining method of amortization means that the book value should not be reduced below the residual value.

 

6) Double-declining-balance amortization computes annual amortization by multiplying the asset's book value less residual value by two times the straight-line rate.

 

7) A machine acquired on April 1 would be amortized a total of eight months for the year ended December 31.

8) Amortization is a process of allocating the cost of an asset over its useful life.

 

9) Cost minus salvage value is called amortizable cost.

 

10) An amortizable asset's carrying value is the assets cost less accumulated amortization.