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What Is Amortization?

By Kristi Waterworth – Updated Aug 6, 2025 at 8:22PM

Key Points

  • Amortization spreads intangible asset costs over their useful lives for financial reporting.
  • Loan amortization involves paying higher interest initially, increasing principal payments over time.
  • Understanding both amortization types aids investors in assessing company value and loan structures.

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