# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Amortization

Since all capital assets, except land, eventually wear out or lose their usefulness, the cost of these assets are charged as an accounting expense over their useful lives.

Amortization is the term used for the gradual writing-off of the value of an asset over a period of time. The process is commonly applied to buildings, machinery, automobiles, the expenses of a new bond issue, and intangible assets such as goodwill.

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