What is 'amortize' πŸ§‘β€πŸ”§


I decided to write about β€œWhat is 'amortize'” after a few colleagues asked for my help in the subject. If you are still in doubt, stick with me…

To reduce gradually an obligation, such as a mortgage, by periodically paying a part of the principal as well as the interest.

In general, to amortize is to write off the initial cost of a component or asset over a certain span of time.

It also implies paying off or reducing the initial price through regular payments.

Financially, amortization can be termed as a tax deduction for the progressive consumption of an asset's value, in particular an intangible asset.

Do you know what makes people curious? Here are a few questions and answers:

Amortize

What is amortization in accounting...

In accounting, amortization refers to the process of expensing an intangible asset's value over its useful life. It is comparable to the depreciation of tangible assets.

What does it mean to amortize assets...

Amortization is the practice of spreading an intangible asset's cost over that asset's useful life. Depreciation is the expensing of a fixed asset over its useful life.

What is amortization of intangibles...

Amortization of Intangibles. Amortization can also refer to the amortization of intangibles. In this case, amortization is the process of expensing the cost of an intangible asset over the projected life of the asset. It measures the consumption of the value of an intangible asset, such as goodwill, a patent, or a copyright.

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What is 'amortize' πŸ§‘β€πŸ”§
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