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what is difference between depreciation and amortization ?
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Answer Posted / diana ann isaac
Depreciation is the process of allocating the cost of fixed
assets over the useful life of the asset in some reasonable
manner. When the fixed assets are purchased, they are
capitalized at the time of purchase, rather than expensed
and written off/depreciated over the years for which the
asset is being utilized.
Amortization is the process of writing off intangible
assets like patents, copyrights etc over the subsequent
years.
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