Amortization (Noun)
Meaning 1
Payment of an obligation in a series of installments or transfers.
Classification
Nouns denoting acts or actions.
Synonyms
Hypernyms
Related Words
Meaning 2
The reduction of the value of an asset by prorating its cost over a period of years.
Classification
Nouns denoting acts or actions.
Examples
- The company's financial statements included an amortization schedule to track the decline in value of its patents over time.
- The amortization of the loan was calculated based on the original purchase price of the equipment and its expected useful life.
- The accountant ensured that the amortization of the intangible assets was properly recorded on the company's balance sheet.
- The business's amortization expense increased significantly after it acquired a new piece of software with a limited lifespan.
- The tax code allowed for the amortization of startup costs over a period of 15 years, providing a significant tax benefit to the entrepreneur.