Amortization Meaning. It essentially reflects the consumption of an intangible asset over its useful life. There are two general definitions of amortization.
Jul 12 2003 Amortization or amortisation. Depreciation is the expensing of a fixed asset over its useful life. In lending amortization is the distribution of loan repayments into multiple cash flow installments as determined by an amortization schedule.
Amortization definition is - the act or process of amortizing.
The second is used in the context of business accounting and is the act of spreading the cost of an expensive and long-lived item over many periods. In lending amortization is the distribution of loan repayments into multiple cash flow installments as determined by an amortization schedule. Over time you pay less in interest and more toward your balance. In relation to a loan amortization focuses.
