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What is amortization?

Answers were Sorted based on User's Feedback



What is amortization?..

Answer / sameer more

Amortization is the process of writting off an intangible
asset or any expense over a period of time.

Is This Answer Correct ?    5 Yes 1 No

What is amortization?..

Answer / sathya

suppose if i take 1000rs as loan form a bank and will pay
200 every month then after the first month my principal
value will be reduced and will become 800.Then i will have
to pay interest for only that reduced value.So amoritsation
refers to decrease in the principal value over a period of
time.

Is This Answer Correct ?    4 Yes 1 No

What is amortization?..

Answer / lakshmi

The charge amount that could be collected at the beginning
from the whole contract amount and it is kept in suspense
account. And afterwards that could moved to bank P/L account

Is This Answer Correct ?    4 Yes 2 No

What is amortization?..

Answer / kamani

Amortization or amortisation is the process of decreasing,
or accounting for, an amount over a period of time. The
word comes from Middle English amortisen to kill, alienate
in mortmain, from Anglo-French amorteser, alteration of
amortir, from Vulgar Latin admortire to kill, from Latin ad-
+ mort-, mors death. Particular instances of the term
include


Amortization of capital expenditures of certain assets
under accounting rules, particularly intangible assets, in
a manner analogous to depreciation.

Is This Answer Correct ?    2 Yes 0 No

What is amortization?..

Answer / shanmugasundaram,jagadeesh

the gradual and periodic reduction of an amount overtime.it
cab apply to either the periodic write down of an asset or a
gradual extinguishment of a debt.

Is This Answer Correct ?    2 Yes 0 No

What is amortization?..

Answer / sunny parekh

The paying off of debt in regular installments over a period
of time.

The deduction of capital expenses over a specific period of
time. Similar to depreciation, it is a method of measuring
the consumption of the value of long-term assets like
equipment or buildings.

Think of amortization (the deduction of capital expenses) as
a way to claim the decrease in value on your car every year.
If you bought your car new for $20,000 and after the first
year it is worth $17,000, theoretically you could amortize
the $3,000 for tax and financial purposes.

But depreciation refers to only Tangible Asset(Building,
Cars etc.) and amortization refers to only Intangible
Asset(Patent, Bonds etc.).

Is This Answer Correct ?    4 Yes 3 No

What is amortization?..

Answer / rejishd.r

Amortization means decreasing value of intangible
assets.where depreciation is done only for tangible assests.

Is This Answer Correct ?    3 Yes 2 No

What is amortization?..

Answer / k2

Technically, amortization refers to ANY practice of taking a
larger sum and reducing it by increments over a certain
period of time. Such as, but not limited to, repayment of
debt(loans, mortgages)or capital expenses (on tangible,
intangible assets). To my knowledge, the practice was
introduced after the Great Depression when most debts were
balloon payments with simple interest and cause many houses
to be lost to foreclosure when balloon payments became due
with no capital to back them, hence causing foreclosure.

Is This Answer Correct ?    1 Yes 0 No

What is amortization?..

Answer / rajani

decrease in the value of intangible assets

Is This Answer Correct ?    1 Yes 0 No

What is amortization?..

Answer / nwabisa

It is a process of expensing intangible assets,

Is This Answer Correct ?    1 Yes 0 No

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