Accumulated Amortization

An account on the balance sheet used as an offset against amortizable assets. It equals the lifetime amount expensed to the Profit & Loss. In general is it seen as a netted amount against the total amortizable assets.

Amortization of Financing Costs

Amortization of Financing Costs

When a business acquires a loan there are typically closing costs involved.   Generally Accepted Accounting Principles (GAAP) require these financing costs to be amortized (allocated) over the life of the loan.  There are several principles the reader needs to understand to properly calculate and assign these costs to the financial statements.

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Tangible and Intangible – Business Definitions and Use

Tangible and Intangible Meaning

Tangible and intangible are terms with several different meanings.  A lot of well educated folks have a difficult time providing an all inclusive definition.  Someone once described tangible as ‘something that can be burned’.  Well, land is tangible and yet, you can’t burn it.

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