The term œamortization? refers to:

1. In accounting, Amortization is very similar to depreciation, it’s a decrease in the value of an intangible asset, which is things that can’t be touched, because of the reduction of its useful life. This can include things like insurance or licenses etc.

E.g., buying a license for 5 years, worth $5,000. After 2 years, its value will be $3,000 because its useful life is now 3 years, the amortization expense was $2000.

2-   In finances, an Amortization schedule is a table that helps in the process of paying a loan or debt. It defines the number of payments, interest, maturity dates, the amount covering the regular principal, and the amount covering interest.