Amortize
Amortize is to charge a portion of an expenditure over a fixed number of years. Those assets with indefinite lives are not subject to amortization. *Amortization expense. An operating expense on the income statement relating to intangible assets. *Patent. An exclusive right to sell or produce one's discovery or invention. A patent is good for 20 years.
Definitions
According to College Accounting: A Practical Approach by Slater (13th edition),
- Amortize. To charge a portion of an expenditure over a fixed number of years. Those assets with indefinite lives are not subject to amortization. *Amortization expense. An operating expense on the income statement relating to intangible assets. *Patent. An exclusive right to sell or produce one's discovery or invention. A patent is good for 20 years.
Related concepts
- Accounting (alternatively known as accountancy) is management of financial data, information, and knowledge about financial transactions of legal entities. Accountancy tends to include bookkeeping and, depending on a particilar enterprise, may also include quatitative analysis of financial data in the bookkeeping system and/or business intelligence.
