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Answer Posted / 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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