What is amortization?

What is amortization?

Answers
It could be the way that the value of an asset, maybe a piece of machinery, reduces over time as it's used. In the UK, this is often called depreciation.
jon.ellis
23 January 2012
In accounting, it's the process by which something reduces over time.
jon.ellis
23 January 2012
Equally, if you are repaying a loan an amortisation table would set out the way that repayments were set against the principal loan amount and the interest, showing how both reduce over time.
jon.ellis
23 January 2012
Add an answer