Amortization usually refers to the process of writing off the cost of a loan or intangible asset.
Amortization schedules are used by lenders, such as financial institutions, to present a loan repayment schedule based on a specific repayment date.
Intangible assets are amortized (debited to expense) over time to relate the asset’s value to the income it generates, in accordance with the Generally Accepted Accounting Principles (GAAP) compliance principle.
Negative amortization can occur when loan payments are lower than accrued interest, causing the borrower to owe more money, not less.
Most accounting and spreadsheet programs have automatic depreciation functions.