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Accounting, Payroll & Pension Issues/Amotization & Depreciation
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Question
In short, how to identify the different between amotization & depreciation of a fixed asset?
Thanks.
Amortization is generally taken against intangible assets -- goodwill for example.
Amortization is calculated as straight-line depreciation.
So, if a fixed asset, which is by definition not an intangible asset, then depreciation would be used rather than amortization.
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| Comment | understood, Sir. | ||
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Accounting, Payroll & Pension Issues
Answers by Expert:
Arthur Naman
Expertise
General accounting and bookkeeping questions. How to do monthly bookkeeping, how to prepare financial reports. How to reconcile accounts.
I cannot answer questions pertaining to pension or retirement planning.
This is not a forum to have homework answered. Please do your own homework.
Experience
30 years' experience doing tax and accounting work
Education/Credentials
MPA from Univ. of Texas at Austin, MBA Golden Gate Univ, San Francisco CA
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