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.
Accountability is the acceptance of responsibility for one’s actions. This implies a willingness to be transparent, allowing others to observe and evaluate their work.
Accounting policies are the procedures a company uses to prepare financial statements. Unlike accounting principles, which are rules, accounting policies are the standard for following those rules.
Acquisition accounting is a set of formal guidelines describing how the acquirer should report the assets, liabilities, non-controlling interests and goodwill of the acquired company.
Performance Based Management (ABM) is a means of analyzing a company’s profitability by looking at every aspect of its business to determine its strengths and weaknesses.