Amortization < WORKING >

It is a non-cash expense , meaning it reduces net income on the income statement but does not affect cash flow. Tax Benefit: Recording amortization reduces taxable income.

Amortization is a financial term with two primary definitions: the over time (like a mortgage) and the systematic allocation of the cost of an intangible asset over its useful life. amortization

Typically uses the straight-line method , where the cost is divided equally over its life ( It is a non-cash expense , meaning it