answersLogoWhite

0


Best Answer

Depreciation is the wear and tear charge allocated to specific fiscal year thorugh income statement for related fixed tangible assets while amortization is same as depreciation just it is done for intangible fixed assets.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Explained the concept of depreciation and amortization?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What assets are not subject to amortization depreciation depletion?

Land is not subject to depreciation, depletion, or amortization.


Is depreciation and amortization a fixed cost?

no


Why depreciation and amortization are treated as non cash items?

Depreciation an amortization are treated as non cash items because the actual amount of depreciation can not be known in cash terms..the depreciation does not lead to any inflow ore outflow of cash ....the amounbt of depreciation is jst deducted frm the actual value of the asset


Does EBIT include depreciation and amortization expenses?

No it doesn't include


What are the varioius Internal sources of cash?

Depreciation Amortization of intangible assets


Does depreciation is charged on intangible assets?

Depreciation is charged to tangible assets while amortization is used to charge intangible assets.


What part of balance sheet the amortization?

Amortization is shown as deduction from intangible asset like depreciation is shown as deduction from tangible asset.


Does amortization have a cash expense?

No amortization is done for intangible assets like depreciation for tangible assets and it also does not involve cash expense.


What is it called when matching the cost of an asset with the revenue it is expected to produced?

Depreciation or Amortization.


What is d d and a in oil and gas accounting?

DD&A stands for Depreciation, depletion & amortization.


Journal entry for amortization of leasehold improvement?

Debit depreciation expensesCredit leasehold improvement


What taxes are referred to in EBITDA calculation?

EArnings before income tax, depreciation and amortization.