Academics > Accounting and Business Department

Amortization

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aDiDas:
Ndi ko na tanda kung meron accumulated neto or direct nababawas sa liabilities.

jamesbond:

--- Quote from: aDiDas on November 14, 2013, 08:47:40 PM ---Ndi ko na tanda kung meron accumulated neto or direct nababawas sa liabilities.

--- End quote ---

??? di po ba naka prepaid expense po yan sa start of the year then naka amortized monthly?  so wala talagang direct sa liabilities dahil naka spread out sya for 12 months.... and expense account is not part of liabilities as per GL is concerned... 

llj:

--- Quote from: aDiDas on November 14, 2013, 08:47:40 PM ---Ndi ko na tanda kung meron accumulated neto or direct nababawas sa liabilities.

--- End quote ---

Amortization is used in different ways, one is amortization of prepaid assets which is directly deducted from the balance of prepaid asset (also termed prepaid expense).  Another is amortization of non tangible fixed assets such as patents, copyrights and the likes.  Lastly, amortization is also used in referring to scheduled payment of long term liability. In this case the payment amount (the amortization) is recorded by reducing the amount of the liability.

yhayha:

--- Quote from: aDiDas on November 14, 2013, 08:47:40 PM ---Ndi ko na tanda kung meron accumulated neto or direct nababawas sa liabilities.

--- End quote ---

kung intangible assets po to, meron parin contra account na immaintain..

whizkid478:
ibig sabihin need mo magamortized every year or monthly basis. Depende sa i aamoritzed na items or account to be used if liabilities or lease of equipments.

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