What do you mean by Amortization?
Answers were Sorted based on User's Feedback
Answer / chalapathi rao govada
We are incurring the expenditure in the current year but
the benifits are expected to come over a couple of coming
years.
In this situation what we do is we will amortise this exp
over the period in which we are expecting the benifits.
Eg: Amortisation of preliminary exp.
Is This Answer Correct ? | 10 Yes | 0 No |
Answer / satish
The paying off of debt in regular installments over a
period of time
Is This Answer Correct ? | 7 Yes | 1 No |
Answer / ajay kumar
Amortization means the reduction of the value of an asset by prorating its cost over a period of years.
Is This Answer Correct ? | 5 Yes | 0 No |
Answer / anandsurya
The systematic allocation of the discount, premium, or
issue costs of a bond to expense over the life of the bond;
the systematic allocation of an intangible asset to expense
over a certain period of time; the systematic reduction of
a loan's principal balance through equal payment amounts
which cover interest and principal repayment.
Is This Answer Correct ? | 5 Yes | 2 No |
Answer / rakesh kadiri
amortization means repayment of loan in installments is
known as the amortization.
Is This Answer Correct ? | 2 Yes | 2 No |
Answer / rajendra thapa
what is different between amortization and differed
expenses.
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Answer / alebachew
Amortization is the prorating intangable assets over the
period of cost.
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Answer / mohammed ikbal hussain
AMORTISATION MEANS,WE HAVE TO PAY SOME DEBT FOR INCURERED. WHICH ONE WILL
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Answer / shilpa
1. The paying off of debt in regular installments over a period of time.
2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
Read more: http://www.investopedia.com/terms/a/amortization.asp#ixzz2E5y3oGTS
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