nerdexam
IBM

C2020-605 · Question #96

Company ABC has multiple purchase method investments with surplus values attributed to amortizable intangibles. Using the investment elimination template, how can amortization be done automatically?

The correct answer is B. Record the annual amortization percentage, and configure automatic journal type 8. See the full explanation below for the reasoning.

Question

Company ABC has multiple purchase method investments with surplus values attributed to amortizable intangibles. Using the investment elimination template, how can amortization be done automatically?

Options

  • ARecord the debit and credit amount of monthly amortization, and ensure no balance control is
  • BRecord the annual amortization percentage, and configure automatic journal type 8.
  • CRecord the debit and credit amount of monthly amortization, and ensure force balance control is
  • DRecord the monthly amortization percentage, and the system will automatically generate

How the community answered

(42 responses)
  • A
    14% (6)
  • B
    74% (31)
  • C
    5% (2)
  • D
    7% (3)

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