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What is Amortization vs Depreciation Explained about?

Amortization and depreciation are methods used to spread the cost of assets over time, with amortization applying to intangible assets and depreciation to tangible assets. Both methods help reduce taxable income and reflect the true value of assets, impacting profitability and financial health. Key differences include the type of asset, the nature of value decline, and examples, while both serve to match costs with revenue over time.

Author

PRABAKARAN.K

Language

EN