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Whai is difference between sinking fund and amortization of assets?
Wiki User
∙ 9y ago
Sinking fund is the setting aside of money for instance by the government to a pool to reduce its budget deficit while amortization is the paying off of debts over a period of time with a decreasing principal balances and interests
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Wiki User
∙ 9y ago
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What is the difference between amortization and depreciation?
Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life.Depreciation Is Applicable only on Fixed & Tangible Assets Which Depends on useful life of that assets that may be expected accurately but Amortization applicable on Intangible Assets whose life is very critical to be measured.DEPRECIATION is calculated for tangible assets while AMORTIZATION is calculated for intangible assets.
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 assets are not subject to amortization depreciation depletion?
Land is not subject to depreciation, depletion, or amortization.
Does depreciation is charged on intangible assets?
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
What are the varioius Internal sources of cash?
Depreciation Amortization of intangible assets
What is the difference between amortization and depreciation?
Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life.Depreciation Is Applicable only on Fixed & Tangible Assets Which Depends on useful life of that assets that may be expected accurately but Amortization applicable on Intangible Assets whose life is very critical to be measured.DEPRECIATION is calculated for tangible assets while AMORTIZATION is calculated for intangible assets.
What is the entry for amortization?
Debit amortization expensesCredit intangible assets
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 assets are not subject to amortization depreciation depletion?
Land is not subject to depreciation, depletion, or amortization.
What is the journal entry for amortization?
Debit amortization expensesCredit intangible assets
Does depreciation is charged on intangible assets?
Depreciation is charged to tangible assets while amortization is used to charge intangible assets.
What method of amortization is normally used for intangible assets?
Straight-line
What are the varioius Internal sources of cash?
Depreciation Amortization of intangible assets
What is the difference between a company's assets and its liabilities or its net assets is?
Equity
What is difference between personal assets and company assets?
Personal assets is assets that are owned by a person. Company assets are assets that are own by the company.
The difference between assets and liabilities is?
assets are what the business owned and liabilities are what the business owe.
What is the difference between assets and fixed assets?
The differences between assets and fixed assets are; If you take an asset you will get your money back anytime but if you get a fixed assets the bank will keep your money untill the timeframe is over.
