What is difference between depreciation and amortization?
submitted by Joe

Krishnan M.S

Amortization usually refers to spreading an intangible asset's cost over that asset's useful life. Depreciation, on the other hand, refers to prorating a tangible asset's cost over that asset's life.

Mugtaba

Depreciation is used to decrease the value of fixed assets and accrual is used for expenses that distribute between two years or more.

Karthik & Ranjith

Depreciation is the gradual reduction in the value of fixed assets. Amortization is the gradual reduction in the value of intangible assets.

sidra

Depreciation is a gradual reduction of tangible (fixed) assets. It is an expense. Amortization is a decrease in value of intangible asset e.g copyright.

Vishwanath Bhaswangiri

Depreciation means reducing the value of the asset due to use. Amortization means spreading a payment over a period of time . Example: Insurance is paid once, but the amount is spread every month. If the premium is $12000, it will be $1000 monthly.

Raheem temitope mariam

Depreciation is the systematic and periodic allocation of the historical cost or revalued amount less estimated residual value of a depreciable asset over its estimated useful life....while amortisation is the provision made in the consumption of intangible assets

addisu fanossie

Amortization is for intangibles, whereas depreciation is for fixed assets.

ROYAL THAKUR

Depreciation is used only for fixed assets and because of this the market value of assets is decreased. On the other hand, amortization is the process of decreasing by a certain amount over a period of time .

KiSHOR BHAGAT

Depreciation is gradual reduction of Tangible Assets (Fixed Assets). It is non cash expenses. Amortization is a decrease of the value of intangible assets.