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What is the difference between amortization and depreciation?

In: Business Accounting and Bookkeeping [Edit categories]

Answer:

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 on Fixed & Tangible Assets Which Depends on useful life of that assets that may be expected accurately but Amortization applicable on Intangible Assets whose life is very critical to be measured.

First answer by Dustybird07. Last edit by Cwasandipsharma. Contributor trust: 0 [recommend contributor ]. Question popularity: 19 [recommend question].

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