What is diffrence between amortization and depreciation

Question

Accepted Answer

Amortization is the process of spreading the cost of an intangible asset over its useful life, while depreciation is the process of spreading the cost of a tangible asset over its useful life.

Amortization is used for intangible assets like patents, copyrights, and trademarks.
Depreciation is used for tangible assets like buildings, vehicles, and machinery.
Amortization is typically calculated using the straight-line method.
Depreciation can be calculated using various methods such as straight-line, declining balance, or units of production.
Amortization expense appears on the income statement, while accumulated amortization appears on the balance sheet.
Depreciation expense appears on the income statement, while accumulated depreciation appears on the balance sheet.

Accepted Answer

Amortization or amortisation may refer to: The process by which loan principal decreases over the life of an amortizing loan. Accounting the expensing of acquisition cost minus the residual value of intangible assets in a systematic manner, or the completion of such a process.

Accepted Answer

Depreciation and amortization are same but amortization is used for intangible assests and depriciation is used for tangible assets

What is diffrence between amortization and depreciation

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