Amortization definition for accounting Essentially, amortization describes the process of incrementally expensing the cost of an intangible asset over the course of its useful economic life. In other words, amortization reflects the consumption of the asset across its useful life.
What is the opposite of amortize?
Accretion can be thought of as the antonym of amortization: see here also, Accreting swap vs Amortising swap. In a corporate finance context, accretion is essentially the actual value created after a particular transaction.
What is a substitute word for?
surrogate, backup, replacement, stand-in, supplant, swap, replace, dummy, stopgap, temporary, ersatz, imitation, alternate, pseudo, second, counterfeit, makeshift, acting, near, simulated.
What does amortization mean in real estate?
Amortization is the schedule of your monthly mortgage loan payments. As you continue to make your payments, the interest amount will decrease and more of the payment will be put towards the mortgage balance. …
What is amortization in simple words?
Amortization is an accounting technique used to periodically lower the book value of a loan or an intangible asset over a set period of time. In relation to a loan, amortization focuses on spreading out loan payments over time. When applied to an asset, amortization is similar to depreciation.
What does Amortised mean in English?
transitive verb. 1 : to pay off (an obligation, such as a mortgage) gradually usually by periodic payments of principal and interest or by payments to a sinking fund amortize a loan. 2 : to gradually reduce or write off the cost or value of (something, such as an asset) amortize goodwill amortize machinery.
What is another name for substitute teacher?
Common synonyms for substitute teacher include relief teacher or casual teacher (used in Australia and New Zealand) and “emergency teacher” (used in some parts of the United States). Other terms, such as “guest teacher”, are also used by some schools or districts.
What is the substitute synonym of personnel?
In this page you can discover 27 synonyms, antonyms, idiomatic expressions, and related words for personnel, like: help, workers, faculty, employees, corps, manpower, human resources, staff, cadre, personel and organization.
What does the word amortization mean in English?
(UK usually amortisation) uk / əˌmɔː.tɪˈzeɪ.ʃ ə n / us / æmˌɔːr.t̬əˈzeɪ.ʃ ə n / the process of reducing a cost or total in regular small amounts:
When to use amortization and depreciation in the same sentence?
For example, if a company spends $1 million on a patent that expires in 10 years, it amortizes the expense by deducting $100,000 from its taxable income over the course of 10 years. It is often used interchangeably with depreciation, which technically refers to the same thing for tangible assets.
What do you mean by amortization of intangible assets?
amortization (countable and uncountable, plural amortizations) The reduction of loan principal over a series of payments. The distribution of the cost of an intangible asset, such as an intellectual property right, over the projected useful life of the asset.
When to use amortization as a tax deduction?
1. A tax deduction for the gradual consumption of the value of an asset, especially an intangible asset. For example, if a company spends $1 million on a patent that expires in 10 years, it amortizes the expense by deducting $100,000 from its taxable income over the course of 10 years.
