amortization

pronunciation

How to pronounce amortization in British English: UK [əˌmɔ:taɪ'zeɪʃn]word uk audio image

How to pronounce amortization in American English: US [əˌmɔtaɪ'zeɪʃn] word us audio image

  • 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 .

more: >How to Use "amortization" with Example Sentences