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image for OpenScout resource :: Amortization

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Amortization, an accounting concept similar to depreciation, is the gradual reduction of the value of an asset or liability by some periodic amount (i.e., via installment payments). In the case of an asset, it involves expensing the item over the "life" of the item—the time period over which it can be used.

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Copyright © 2011 Advameg, Inc.