amortization
pronunciation
How to pronounce amortization in British English: UK [əˌmɔ:taɪ'zeɪʃn]
How to pronounce amortization in American English: US [əˌmɔtaɪ'zeɪʃn]
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- Noun:
- the reduction of the value of an asset by prorating its cost over a period of years
- payment of an obligation in a series of installments or transfers
Word Origin
- amortization (n.)
- 1670s, in reference to lands given to religious orders, from Medieval Latin amortizationem (nominative amortizatio), noun of action from past participle stem of amortizare (see amortize). Of debts, from 1824.
Example
- 1. Hp 's latest offer values 3par at 262 times the company 's earnings before interest , taxes , depreciation and amortization during the past year .
- 2. Yet home-equity loans and " negative amortization " mortgages boosted spending .
- 3. This mortgage interest program is termed negative amortization .
- 4. The systematic write-off to expense of the cost of an intangible asset over its useful life is termed as amortization .
- 5. The usual accounting entry for amortization consists of a debit to amortization expense and a credit to the intangible asset account .