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What is Depreciation and how is it different from amortization
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Answer / muhammad ramzan
depreciation is the poriton of cost of any tangible assest
(machinery, etc.) that is used up in business during a
year, amortization is portion of cost of intangile
assests.e.g. copyrights, etc.
hop u understand the difference well.
| Is This Answer Correct ? | 14 Yes | 0 No |
Answer / shivani jhamb
Depriciation is a permanant, continous & gradual shrinkage
in the book value of a fixed assets.Difference between
Depriciation & Amortization is - Depriciation is charged on
tangible assets & Amortization is a process of writing off
the value of an intangible assets.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / h.r. sreepada bhagi
Depreciation is the reasonable portion of the tangible fixed
assets (Capital Equipments) charged to Profit & Loss Account
of a particular financial period. Where as Amortization
refers to charging of a portion of the cost of intangible
assets like, Patents, Copy Rights etc. and Pre-operative or
Preliminary expenses to the Profit & Loss Account of a
particular financial period. Even writing off the Deferred
Revenue Expenditure over a reasonable period comes under
amortization. The basic principle is that money is spent in
a particular financial period but the benefit is derived
over many years & hence to match revenue & cost, these
costs/expenditures are charged against revenues over a
period of more than one year.
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / guest
depreciation is used for tangible assets like L&B, p&m Where
as Amortization is used for intangible assets like Goodwill.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / rikki
that true said by Muhammad Ramzan that depreciation is
charged on the tengible assets of the orgination that
directly used by the company for profit
making ..........and amortization is charge on intangible
assets of the orgnization which make profit in indirect
way ;
| Is This Answer Correct ? | 0 Yes | 1 No |
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