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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.
Wiki User
∙ 6y ago
Wiki User
∙ 9y agoDEPRECIATION is calculated for tangible assets while AMORTIZATION is calculated for intangible assets.
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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
Explained the concept of depreciation and amortization?
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.
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 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
What is the difference between amortization and accrual?
Amortization is the monthly depreciation of an asset that depreciates over time. Accrual is the sum money either earned or owed due to an monthly interest rate over months or years. So amortization does not deal with fiscal money and accrual is sum of money over time that needs to be paid or received (revenue).
Does EBIT include depreciation and amortization expenses?
No it doesn't include
Explained the concept of depreciation and amortization?
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.
What are the differences between amortization and depreciation?
These are two separate financial and business related terms. Depreciation regards the loss of value of product over time due to age, wear, and obsolescence. Amortization regards the payment schedule of those goods and services financed. Amortization and depreciation are related as financiers may calculate loss of value as part of the repayment. This is especially important when cars are leased, as the amortization amount takes into consideration loss of value.
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.
The difference between the cost of an asset and the accumulated depreciation for that asset is called?
Book Value is the difference between the cost of an asset and the accumulated depreciation of that asset.
