Definition
The process of expensing the cost of an intangible asset (like a patent or trademark) over its useful life. It's depreciation's cousin, but for assets you can't touch.
A
Amortization
Related Terms
Depreciation
The systematic allocation of a long-term asset's cost over its useful life. It's not about the asset losing value—it's about matching expense with the revenue the asset helps generate.
Intangible Assets
Long-term assets without physical form. Examples: patents, copyrights, trademarks, goodwill. Amortized over useful life (except goodwill).
Learn More About Accounting
Explore our free lessons and practice labs to master accounting concepts.