What is amortization?
Answers were Sorted based on User's Feedback
Answer / v.hemant kumar
Amortization is the pratice of writtening off the capital
expense especially the expense on intangible assets such as
copyrights, patents, goodwill( that is purchased)etc, over
a particular period of time. It should not be confused with
depreciation as depreciation is with regard to tangible
assets only. However it should be understood that this is a
book entry only & does not involve any cash outflow.It is
mainly done for income tax reduction pratice only
Is This Answer Correct ? | 108 Yes | 2 No |
Answer / bhargava
The process of writing off an intangible asset is called as
amortization. (anybody can modify this)
Is This Answer Correct ? | 109 Yes | 16 No |
Answer / husna
Amortization is the process of writting off an expense over
a period of time.
Is This Answer Correct ? | 52 Yes | 10 No |
Answer / suman baba
it is the term used for calculating depreciation on
intangible assets
Is This Answer Correct ? | 45 Yes | 8 No |
Answer / n.r.jothi narayanan
Technically speaking Amortization refers to INTANGIBLE
ASSET and Depreciation refers to TANGIBLE asset.
For example a British company invented a washing machine
with a technology of washing clothes without water.
The fall in value of this new tech. washing machine over the
years is a Depreciation.(washing machine:a tangible asset.)
The fall in value of the patent of the new technology over
the years is a process of Amortization.(patent of new techno
-logy for waterless - washing machine: an intangible asset).
N.R.JOTHI NARAYANAN,
PALAKKAD-678001
Is This Answer Correct ? | 25 Yes | 3 No |
Answer / laxman
Dear saroja goodwill, patents, copy rights are not a
tangiable asset these are intangible assets.
The process of writing off an intangible asset is called as
amortization.
Is This Answer Correct ? | 20 Yes | 1 No |
Answer / syed habibul alam
The paying off of debt in regular installments over a
period of time.
Is This Answer Correct ? | 30 Yes | 18 No |
Answer / sarika
Amortization means decreasing value of intangible
assets.where depreciation is done only for tangible assests.
Is This Answer Correct ? | 12 Yes | 1 No |
Answer / manoj tirkey
Amortization is the periodical payment of debt
Is This Answer Correct ? | 28 Yes | 21 No |
Answer / g.upendra rao
amortization means fall in the value of assets in
intangble assets like good will prepaid expences.
Is This Answer Correct ? | 11 Yes | 4 No |
how to solved the shares qusionas ?
Expand---------TDSR
what is derivative?
8 Answers Bank Of America, FactSet Systems,
WHAT DO YOU MEAN BY BANK RECONCILIATION STATEMENT AND MIS RERORT
There is any new golden rule added with remain three? Why bank credited our all deposited?
What is contingent liability.
what is Tds %,Service tax %,Cess %,and ESI,PF %,and what is the use of this.
what is the difference between credit and debit note?
55 Answers Accenture, FMCG, Private, Redson, TATA,
what is amortisation of intangible assets?
Expand---------RTC
How you implemented a chargeback system?
What is means by A/c in Accountancy ?