What is the difference between depreciation and amortization?



What is the difference between depreciation and amortization?..

Answer / Nitin Kumar

Depreciation and amortization are both methods used to allocate the cost of long-term assets over their useful lives. The main difference lies in the types of assets they apply to: Depreciation applies to tangible assets (like buildings or equipment), while amortization applies to intangible assets (like patents or copyrights).

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