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Answer Posted / kiran
Amortization Writing off of he assets of a company over a
number of years, not necessarily depending on the life of
the assets, for the purpose of their replacement of
renewal. It is different from depreciation, which is
periodic writing off of the asset based on its normal life
expectany. Amoritization is usually accompanied by putting
aside money in a SINKINGFUND, so that the considerably
increased cost of replacement or modernization can be met,
when it is needed.
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