Final answer:
True, amortization is the allocation of the cost of an intangible asset over its useful life, which is a method of recognizing expenses for such assets systematically.
Step-by-step explanation:
The term amortization is indeed used to identify the expense recognition for intangible assets. True to the concept, amortization refers to the systematic allocation of the cost of an intangible asset over its useful life. This accounting practice helps companies spread out the expense recognition of intangible assets such as patents, trademarks, and copyrights, which do not have a physical presence but provide value over a period of time. It's similar to depreciation, which is used for tangible assets. Amortization ensures that the expense associated with acquiring intangible assets is recognized in the income statement in a manner that reflects the asset's consumption or expected pattern of economic benefits.