Topic: Difference between Depreciation and Amortization
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Answers to Common Questions
What is the difference between amortization and depreciation?
Answer 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 o... Read More »
Source: http://wiki.answers.com/Q/Difference_between_depreciation_and_amo...
What is the difference between depreciation and amortization?
Amort. spreading intangible asset's cost over that asset's useful life. Depr. spreads tangible asset's cost over asset's life. Read More »
Source: http://www.chacha.com/question/what-is-the-difference-between-dep...
How to Calculate Depreciation & Amortization
In the world of accounting, there are two different types of transactions: cash and non-cash. This designation is important for the accountant; however, it makes analyzing a company's real earnings tricky. Two non-cash accounts are deprecia... Read More »
Source: http://www.ehow.com/how_6387298_calculate-depreciation-amortizati...
Featured Content:
Difference between Depreciation and Amortization
Amortization and depreciation seem like similar functions because both methods are used to allocate the cost of assets over their useful lives. But differences exist between the two methods.... More »
Difficulty:
Easy
Source: www.ehow.com
More Common Questions
Answers to Other Common Questions
Accrual accounting is different from cash accounting in that accrual accounting provides ways to record a transaction with no real cash exchange. Depreciation and amortization are two examples of non-cash transactions; that is, no cash real...
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Source: http://www.ehow.com/how_5626335_reduce-depreciation-amortization-...
What I've had explained to me is that Depreciation is the value of the house (etc) with time starts to fall. Amortization is the gradual elimination of a debt in regular payments over a period of time. For more on amortization and depreciat...
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Source: http://answers.yahoo.com/question/index?qid=20060619180845AATdS24
All of these refer to 'wearing out of assets' Typically, you depreciate capital assets (cars, equipment etc) You amortize intangible assets, such as licenses, trademarks and goodwill. You would deplete natural resources (IE depleting the oi...
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Source: http://answers.yahoo.com/question/index?qid=20061023133331AA9h6kS
It looks like it is different because you may have owed or earned interest on the income statement.
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Source: http://www.chacha.com/question/why-is-depreciation-and-amortizati...
Depreciation is the decrease in an asset's value over the useful life of an asset. Accumulated depreciation is the amount of depreciation so far recorded during an asset's life.
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Source: http://www.ehow.com/facts_6192574_difference-between-depreciation...
Tangible assets (such as building, car, computer) are depreciated and intangible assets (such as patent) are amortized. Land is neither depreciated nor amortized. The concepts are similar...you buy an item, say a car for $20,000. You record...
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Source: http://answers.yahoo.com/question/index?qid=20080311092623AAXnlT6
