What does it mean to amoritize?

Answer 1

To account for over a period of time. For example, if a company amortizes the expenses associated with the acquisition of another company, it means that instead of recognizing all of those expenses in that particular fiscal year that the company will instead recognize a certain portion of those expenses each year for a certain number of years. Another example is relating to loans. If a loan is amortizing, it means that a portion of the principal balance is being paid each period (month, quarter, etc.) until paid in full.