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Types of assets that are amortized?
Intangible assets are those assets which are amortized as compared to tangible assets which are depreciated.
Which intangible assets amortized over their useful life?
Following are the intangible assets amortized: 1 - Patents 2 - Goodwill 3 - Preliminary Expenses etc.
Intangible assets are capitalized and amortized over periods benefited?
Matching principle
Is goodwill ammortised?
Purchased goodwill should be amortized over its useful economic life.
XYZ Corp sells its bonds at a premium and applies the effective interest method in amortizing the premium.Do you think the annual interest expense will increase or decrease over the life of the bonds?
It really depends on how much is the premium paid. Effectively if the premium paid is higher than the par value of the bonds issued, the annual interest expense would be relatively lower. Another perspective is that since that both the bonds and its premium uses effective interest method, considering all factors remain the same, the annual interest expense will remain unchanged. Premium of the bond should be captialized within the holders of the bonds and amortized over the years in which the manner best represents. Issuer of the bonds generally do not captialize the premium of the bond separately. You should also note that the bonds issued are not compound financial instruments or contain any embedded derivates.
Types of assets that are amortized?
Intangible assets are those assets which are amortized as compared to tangible assets which are depreciated.
What can be amortized on the balance sheet?
Intangible assets are amortized on balance sheet same as tangible assets are depreciated.
Which intangible assets amortized over their useful life?
Following are the intangible assets amortized: 1 - Patents 2 - Goodwill 3 - Preliminary Expenses etc.
What is the definition of an amortized loan?
An amortized loan is just a basic loan where the principal and interest are paid on a monthly basis. Usually, the majority of the interest is paid first, then the principal.
When bonds are sold for more than face value carrying value is equal to?
When bonds are sold for more than face value, the carrying value is equal to the face value plus any premium. The premium is the excess amount paid by the investors over the face value of the bond and is amortized over the life of the bond.
What is an amortized account?
Amortized account is same like depreciation account which is used to reduce the value of intangible asset over it's useful life span through income statement.
What is the difference between mortgages and amortized loans?
The main difference between mortgages and amortized loans is that a mortgage is a type of loan specifically used to buy real estate, while an amortized loan is a loan where the principal amount is paid off gradually over time through regular payments that include both principal and interest.
Does the amortized amount of prepaid expense goes on income statement?
YES
What are the differences between fixed-rate and adjustable-rate amortized loans?
Fixed-rate amortized loans have a constant interest rate and monthly payment throughout the loan term, providing predictability and stability. Adjustable-rate amortized loans have interest rates that can change periodically, leading to fluctuating monthly payments based on market conditions.
Intangible assets are capitalized and amortized over periods benefited?
Matching principle
When repaying an amortized loan the interest payments increase over time?
true
Are car loans amortized in a similar way to mortgages?
Yes, car loans are amortized in a similar way to mortgages, where the borrower makes regular payments that include both principal and interest until the loan is fully paid off.
