Short notes on Amortization in accounting

Posted on 06-05-2016        By ADMIN

Short notes on Amortization in accounting

Amortization – It is a systematic write-off of the cost ofintangible assets over their economic life. It may be a discount of bondpayable to interest expense over the life of bond. This should make clear thatone account is balance sheet account and another is income statement account.In this way, amortization involves a systematic allocation of balance sheetitem to income statement item that is, revenue or expense.

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