Answer Posted / dharmesh sati
Amortization, an accounting concept similar to
depreciation, is the gradual reduction of the value of an
asset or liability by some periodic amount (i.e., via
installment payments). In the case of an asset, it involves
expensing the item over the "life" of the item—the time
period over which it can be used. For a liability, the
amortization takes place over the time period that the item
is repaid or earned. Amortization is essentially a means to
allocate categories of assets and liabilities to their
pertinent time period.
| Is This Answer Correct ? | 0 Yes | 4 No |
Post New Answer View All Answers
Why Is The Distinction Between Product Costs And Period Costs Important?
pass the journal as wellas ledger entries off the foll 1st jan :> started businress with cash rs 1,20,000 & goods worth rs 60,000. 2nd jan > cash purchases rs 50,000. 4th jan >cash sales rs 40,000. 6th jan > purchase good's from sonali on credit worth rs 30,000 at 10 % trade discount. 8th jan> sold sood's to komal on credit rs 20,000 at 10% trade discount. 10th jan > paid rent by a cheque rs 50,000. 12th jan > good's worth rs 4,000 lossed by fire. 14th jan > good's worth rs 3,000 withdrawn from business for personal use. 16th jan > good's worth rs 2,000 distributed as free samples. 18th jan > good's worth rs 1,000 exchange for furniture.
if cheque bounced what we received from customers and payed to bank what entry should we create in single entry system
What Is Responsibility Accounting?
Tell me what is gaap?
all GL Related Interview questions with answear
Under the accrual basis of accounting, when revenues are reported in the accounting period?
Hello Friends, I am Vinod Rawat & want some tips of interview question for the post of accountant in a reputed company Pls. Given Examples.
What is the difference between the accrual accounting and cash accounting?
What is control in accounting?
What is an accounting transaction?
i am trying to set up a recurring reversing journal in Oracle GL, my problem is i have income balance of £30k that i only want to show 1/12th in a period over 12 months. can any one help me set it up . i want to show P01-13 opening balance £30k less £27500 P02-13 reverse P01-13 journal P02-13 opening balance £30k less £25000 etc. or does anyone know of another way it can be done automatically every month.
What qualifications have you achieved?
how to finalised the Balance sheet & profit & loss A/C
Explain what is bank reconciliation?
