Results for tag: "Amortization"

Amortization in corporate finance is the process of allocating the cost of an intangible asset over a period of time. It is a method of spreading out the cost of an asset over its useful life, and is used to reduce the amount of income tax a company pays in the current year. Amortization is used to account for the cost of intangible assets such as patents, copyrights, and trademarks. It is also used to account for the cost of certain long-term investments, such as bonds and mortgages. Amortization is an important part of corporate finance, as it helps companies manage their income tax liabilities. By amortizing the cost of an asset over its useful life, companies can reduce their current year income tax liability. This allows them to reinvest more of their profits into their business, which can help them grow and become more profitable. Some companies in the amortization market include Microsoft, Apple, Amazon, and Google. Show Less Read more