Amortization is the process by which businesses spread the allocation of an intangible asset's cost to expense over its useful life.

Question

Quizplus · Accepted Answer

Amortization is the process of allocating the cost of an intangible asset, such as a patent or trademark, over its useful life. This is done to reflect the asset's declining value as it is used up or becomes obsolete. Amortization is similar to depreciation, which is the allocation of the cost of tangible assets over their useful lives.

Amortization Is the Process by Which Businesses Spread the Allocation