Question

Which two accounts are used to record the adjusting entry for the amortization of long-term assets that lack physical substance?

a)amortization expense
b)accumulated amortization

Answer 1

The accounts used to record the adjusting entry for the amortization of long-term assets without physical substance are amortization expense and accumulated amortization.

Step-by-step explanation:

In accounting, the two accounts used to record the adjusting entry for the amortization of long-term assets without physical substance are amortization expense and accumulated amortization.

The amortization expense account is used to record the periodic expense associated with the amortization of the asset. It is an income statement account that appears on the income statement.

The accumulated amortization account is a contra-asset account that is used to accumulate the total amount of amortization expense over the life of the long-term asset. It is a balance sheet account and appears on the balance sheet as a deduction from the related long-term asset.