• Answer of this question

    What is amortization.
    Davneet Singh's image
    Davneet Singh

    Hi Rajnish

    There are 2 types of assets

    1. Tangible (Assets which can be seen like Building,Machine)

    2. Intangible (Assets which cannot be seen like Goodwill,License,TRADEMARK)

     

    On tangible assets,Depreciation is charged

    On Intangible,Amortization is charged

     

     

    Amortization is reduction in value of Intangible assets

    in technical terms,

    Amortization is  allocating the cost of an intangible asset over a period of time

     


    Written on Jan. 11, 2017, 6:23 p.m.