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1. The Effect of Amortization

in Chapter 7 (Problem 1 of 5)

Determine the effect on a company’s Assets and Net Income from the following transaction: a patent is amortized at year end.

Assets Net Income
A Decreased Decreased
B Decreased No effect
C Increased No effect
D Increased Increased
E None of the above
Watch Solution (0:53) Hide Solution Reveal Solution

The Rest Of The Practice Problems

Click Here to View All Chapter 7 Problems at Once View
1 The Effect of Amortization
You are here. 		Easy
2 The Effect of Capital vs Revenue Expenditures Easy
3 Calculating Depreciation using DDB Moderate
4 Change in Depreciation Moderate
5 Failure to Record Depreciation Moderate
← Chapter 6

Chapter 7 Videos

1 Acquisition Cost of Assets 13:23
2 Lump Sum Purchases 6:01
3 What is Depreciation? 11:23
4 Straight Line Depreciation 4:33
5 Double Declining Balance 13:58
6 Units of Production 3:43
7 Partial Year Depreciation 5:50
8 Capital vs. Revenue Expenditures 10:42
Chapter 8 →