Search results
- DictionaryAm·or·ti·za·tion/ˈamərdəˈzāSHən/
noun
- 1. the action or process of gradually writing off the initial cost of an asset: "due to the amortization of initial costs, the risks of negative working capital are mitigated"
May 27, 2024 · Amortization typically refers to the process of writing down the value of either a loan or an intangible asset. Amortization schedules are used by lenders, such as...
May 10, 2022 · Amortization is the process of spreading out a loan into a series of fixed payments. The loan is paid off at the end of the payment schedule. Some of each payment goes toward interest costs, and some goes toward your loan balance. Over time, you pay less in interest and more toward your balance.
Feb 5, 2024 · Amortization is the practice of spreading an intangible asset's cost over that asset's useful life. Depreciation is the expensing a fixed asset as it is used to...
In lending, amortization refers to paying off a debt through periodic payments, where each payment pays the periodic interest on the remaining balance and a portion of the loan principal. Most consumer loans (e.g. car loans, mortgages) are amortizing loans, as are many business loans.
1. : the act or process of amortizing. 2. : the result of amortizing. Examples of amortization in a Sentence.
Jan 29, 2022 · Amortization is writing down the value of an asset or the payment of a loan over a period. From a company perspective, it would be amortizing expenses for assets,...
In financial accounting, amortization is the practice of spreading the cost of an intangible asset over its useful life -- things like patents, franchise agreements, costs of...
May 15, 2024 · Amortization is when an asset or a long-term liability’s value or cost is gradually spread out or allocated over a specific period. It aims to allocate costs fairly, accurately, and systematically so that financial records can offer a clear picture of a company’s economic performance.
In accounting, amortization is a method of obtaining the expenses incurred by an intangible asset arising from a decline in value as a result of use or the passage of time. Amortisation is the acquisition cost minus the residual value of an asset, calculated in a systematic manner over an asset's useful economic life.
Definition of Amortization. In general, the word amortization means to systematically reduce a balance over time. In accounting, amortization is conceptually similar to the depreciation of a plant asset or the depletion of a natural resource.
