what is the difference between amotization and
depreciations????
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depriciation is the reduction in the value of asset due to
wear and tear use,lapse of time, obsolence and depletion
whereas amortisation is used for only intangible assets
such as patents,copy rightetc
THE VARIOUS METHODS OF DEPRICIATION ARE
STRAIGHT LINE METHOD
DIMNISHING BALANCE METHODS
ETC
| Is This Answer Correct ? | 27 Yes | 1 No |
Answer / guest
Amotization refer to the fall in the value of intangible
assets. Eg- Goodwill,Patents,Copy rights etc
Depreciations refer to the fall in the value of tangible
assets. Eg-Machinary,Building etc
| Is This Answer Correct ? | 18 Yes | 4 No |
Answer / c handu
Amortize means Repayment of a loan by installments; an
accounting procedure allowing gradual repayment
(retirement) of a debt by means of systematic payments of
principal and interest over a period of the estimated life
of the asset on which the loan is made or secured. For
FIXED ASSETS, DEPRECIATION is the allowance for wear-out.
For natural resources, DEPLETION is the allowance for the
wasting away of the asset.
DEPRECIATION is An accounting term for the cost recovery of
REAL PROPERTY and PERSONAL PROPERTY; the EXPENSE deduction
on an INCOME STATEMENT allowing for gradual wearout of a
FIXED ASSET; AMORTIZATION of a fixed asset. The duration of
the depreciation period approximates the useful life of the
asset. Commonly used methods of depreciation include
STRAIGHT-LINE DEPRECIATION; ACCELERATED DEPRECIATION;
ACCELERATED COST RECOVERY SYSTEM; DECLINING-BALANCE METHOD;
SUM-OF-THE-YEARS-DIGITS METHOD.
| Is This Answer Correct ? | 3 Yes | 6 No |
Answer / toyax
amortization and depreciation are same.
interest amount = principal amount x interest rate
amortatization = principal amount + interest amount
total amount due = amortization / terms
| Is This Answer Correct ? | 0 Yes | 8 No |
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