Question

Amortization and depreciation will be found on the income statement as

a.one amount.

b.They will be on the balance sheet.

c.They will not be found on the income statement.

d.separate expenses.

Answer 1

Correct answer------------(d) Separate expenses.

.

Depreciation is charged on tangible assets whereas amortization is done for intangible assets such as patents and trademarks.

Both depreciation and amortization are different items to be reported on income statement.

They are not reported on Balance sheet since they are expenses not assets or liabilities.