Amortization vs. Depreciation
Amortizationnoun
The reduction of loan principal over a series of payments.
Amortizationnoun
The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.
Amortizationnoun
The act or right of alienating lands to a corporation, which was considered formerly as transferring them to dead hands, or in mortmain.
Amortizationnoun
The extinction of a debt, usually by means of a sinking fund; also, the money thus paid.
Amortizationnoun
the reduction of the value of an asset by prorating its cost over a period of years
Amortizationnoun
payment of an obligation in a series of installments or transfers
Amortization
Amortization (or amortisation; see spelling differences) is paying off an amount owed over time by making planned, incremental payments of principal and interest. To amortise a loan means .
Depreciationnoun
The state of being depreciated; disparagement.
Depreciationnoun
The decline in value of assets.
Depreciationnoun
(accounting) The measurement of the decline in value of assets. Not to be confused with impairment, which is the measurement of the unplanned, extraordinary decline in value of assets.
Depreciationnoun
The act of lessening, or seeking to lessen, price, value, or reputation.
Depreciationnoun
The falling of value; reduction of worth.
Depreciationnoun
the state of being depreciated.
Depreciationnoun
a decrease in price or value;
Depreciationnoun
decrease in value of an asset due to obsolescence or use
Depreciationnoun
a communication that belittles somebody or something
Depreciation
In accountancy, depreciation refers to two aspects of the same concept: first, the actual decrease of fair value of an asset, such as the decrease in value of factory equipment each year as it is used and wear, and second, the allocation in accounting statements of the original cost of the assets to periods in which the assets are used (depreciation with the matching principle).Depreciation is thus the decrease in the value of assets and the method used to reallocate, or the cost of a tangible asset (such as equipment) over its useful life span. Businesses depreciate long-term assets for both accounting and tax purposes.
