Amortization of intangible assets and depreciation of tangible assets are used for tax purposes to reduce the yearly income generated by the assets by their decreasing values so that the tax imposed upon the earnings of assets is less.
http://legal-dictionary.thefreedictionary.com/Amortization
an act or instance of amortizing a debt or other obligation. 2. the sums devoted to this purpose. Also, amortizement. Origin of amortization.
http://www.dictionary.com/browse/amortization
( Accounting : Basic ) Amortization is a situation in which the value of intangible assets such as patents falls because of their age or how much they have been used. This figure represents operating profit before depreciation and amortization. The purpose of amortization is to reflect resale or redemption value.
https://www.collinsdictionary.com/dictionary/english/amortization
Related Terms. 1  1. Preferred term for the apportionment (charging or writing off) of the cost of an intangible asset as an operational cost over the asset's estimated useful life. 2  2. Gradual repayment of a loan in equal (or nearly equal) installments which include portions of interest and principal amounts.
http://www.businessdictionary.com/definition/amortization.html
amortization [(am-uhr-tuh-zay-shuhn, uh-mawr-tuh-zay-shuhn)] A term that refers either to the gradual paying off of a debt in regular installments over a period of time or to the depreciation of the “book value” (that is, the standard assessed value) of an asset over a period of time.
http://www.dictionary.com/browse/amortization
If an intangible asset has an indefinite life, such as good will, it cannot be amortized. Amortization is not the same as depreciation, which is the allocation of the original cost of a tangible asset computed over its anticipated useful life, based on its physical wear and tear and the passage of time.
http://legal-dictionary.thefreedictionary.com/Amortization
Amortization is a situation in which the value of intangible assets such as patents falls because of their age or how much they have been used. 1  This figure represents operating profit before depreciation and amortization. 2  The purpose of amortization is to reflect resale or redemption value.
https://www.collinsdictionary.com/dictionary/english/amortization
Amortization is the gradual reduction of a debt by regular scheduled payments of interest and principal. Amortization is the gradual reduction of a debt by regular scheduled payments of interest and principal. Each month, borrowers owe lenders the interest that accrues based on their interest rate and loan balance.
https://www.lendingtree.com/glossary/what-is-amortization
What it is: Amortization is an accounting term that refers to the process of allocating the cost of an intangible asset over a period of time. It also refers to the repayment of loan principal over time. Let's assume Company XYZ owns the patent on a piece of technology, and that patent lasts 15 years.
http://www.investinganswers.com/financial-dictionary/financial-statement-analysis/amortization-2073
1. Preferred term for the apportionment (charging or writing off) of the cost of an intangible asset as an operational cost over the asset's estimated useful life. It is identical to depreciation, the preferred term for tangible assets.
http://www.businessdictionary.com/definition/amortization.html
definition of amortization
Amortization is the process of allocating the cost of an intangible asset over a period of time.