In recording amortization of intangible asset, why isn't there an entry such as a credit to accumulated amortization? Why isn't it done the equivalent way we'd have for a fixed asset by keeping track of accumulated depreciation. Instead I notice the value of whatever the intangible asset is, is directly reduced by crediting the intangible asset When it's time to amortize. I'm guessing we could reduce the value of a fixed asset too directly. Just want to confirm that there hasn't been any recent changes to the idea of accumulated depreciation.
In recording amortization of intangible asset, why isn't there an entry such as a credit to accumulated amortization? Why isn't it done the equivalent way we'd have for a fixed asset by keeping track of accumulated depreciation. Instead I notice the value of whatever the intangible asset is, is directly reduced by crediting the intangible asset When it's time to amortize. I'm guessing we could reduce the value of a fixed asset too directly. Just want to confirm that there hasn't been any recent changes to the idea of accumulated depreciation.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:In recording amortization of intangible asset, why isn't there an entry such as a credit to accumulated amortization? Why
isn't it done the equivalent way we'd have for a fixed asset by keeping track of accumulated depreciation. Instead I notice
the value of whatever the intangible asset is, is directly reduced by crediting the intangible asset When it's time to
amortize. I'm guessing we could reduce the value of a fixed asset too directly. Just want to confirm that there hasn't been
any recent changes to the idea of accumulated depreciation.
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