Question

Amortisation is a decrease in the value of assets.

• A. tangible
• B. intangible
• C. all fixed
• D. current

Answer 1

The correct option is B intangible

Amortisation is most commonly used to describe the routine decrease in value of an intangible asset. A corresponding concept for tangible assets is known as depreciation. The idea of amortisation and depreciation is that the cost of an asset is spread over the period that it will be of use or its useful life.