Difference between depreciation and amortization
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Amortization
Amortization is a method of spreading the cost of an intangible asset over a definite period of time, which is usually the asset's life
Depreciation
depreciation is a method of spreading the cost of a fixed asset over a specific period of time, normally the course of its useful life.
DIFFERENCE
The main difference between them is that amortization is used when intangible assets (non-physical assets) are purchased, while depreciation is used when tangible assets (physical assets) are purchased.
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