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LeoGlossary: Amoritization
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The process of spreading the cost of an intangible asset over the course of its useful life. These are non-physical assets that are essential for the business.
They include:
- Trademark
- Patent
- Copyright
- Franchise agreement
This is an accounting method that adjusts the value associated on the balance sheet.
In real estate, this is the reduction of mortgage debt over time by making regularly scheduled payments. As that occurs, the interest payment goes down while the principal payment increases.
General:
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