amortization

amortization — noun

1. an accounting method that records a long-term cost bit by bit across several per

1.名詞C1
釋義

an accounting method that records a long-term cost bit by bit across several periods instead of taking the whole amount at once.

例句

The company spread the software cost through amortization over five years.

amortization over + period

During the June audit, Mia checked the patent's annual amortization entry.

amortization of + asset / cost

同義詞
  • depreciation

    similar accounting idea, but usually used for physical assets rather than patents or software

  • write-down

    broader; may be a one-time reduction rather than a planned spread across periods

  • cost allocation

    broader business term for assigning cost, not always for reducing book value over time

文法句型

amortization of + cost / asset

amortization over + period

用法筆記

Common with intangible assets, software costs, patent rights, and similar amounts carried in the accounts over several years. Distinguish from sense 2 (PAY OFF DEBT): here the amount falls because of accounting treatment, not because a borrower is sending cash payments.

常見錯誤

❌The factory reported truck amortization this year.
✅The factory reported truck depreciation this year.
💡physical equipment is usually depreciated, while amortization is more often used for intangible assets or certain fees.

2. a plan for clearing a debt through fixed payments made over time until the amoun

2.名詞C1
釋義

a plan for clearing a debt through fixed payments made over time until the amount owed reaches zero.

例句

The bank sent Mei a mortgage amortization schedule for twenty years.

mortgage amortization schedule

For her tea shop, Wen's monthly amortization kept the loan manageable.

monthly amortization

同義詞
  • repayment

    broader; can refer to any act of paying a debt back

  • installment plan

    more everyday; emphasizes separate payments in a schedule

  • payment schedule

    broader; may describe timing without emphasizing the debt reaching zero

反義詞
  • default

    the borrower stops making the required payments instead of reducing the debt

文法句型

amortization of + loan / debt

loan amortization

用法筆記

Usually appears with loan, mortgage, schedule, period, or payment. Distinguish from sense 1 (SPREAD COST): here money is actually paid to reduce the debt, not just recorded differently in the books.

常見錯誤

❌The loan's amortization is one final payment next June.
✅The loan is due in one final payment next June.
💡amortization describes a series of payments over time, not a single lump-sum payoff.