What is depreciation and amortization?

Mar 26, 2023

1 min read

What is depreciation and amortization?

Depreciation and amortization (Amortization) is the value from assets that deteriorate over time. or the value of the product that decreases over time This makes the accountants of various companies make reserves for depreciation and amortization. in order to keep it for repairing assets that can be used

The difference between depreciation and amortization

Depreciation or depreciation Will be calculated from tangible or tangible assets such as land, buildings, equipment

Amortization Will be calculated from intangible or abstract assets such as copyrights, leasehold rights

Depreciation is considered an expense. that the company has to provide a budget to replace the deterioration of various assets over time If a company that cannot manage this depreciation Shows that the management is not good enough. Because handling this problem is considered difficult enough.

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