Question Details

Recording amortization each period is an application of the matching principle


TRUE OR FALSE:
	1.	Recording amortization each period is an application of the matching principle.

	2.	The Accumulated Amortization account represents a cash fund available to replace capital assets.

	3.	In calculating amortization, both capital asset cost and useful life are based on estimates.

	4.	Using the units-of-activity method of amortizing factory equipment will generally result in more amortization expense being recorded over the life of the asset than if the straight-line method had been used.

	5.	Residual value is not subtracted from capital asset cost in determining amortization expense under the declining-balance method of amortization.



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