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Amortization and Depreciation: CNBC Explains

In accounting terms, amortization and depreciation are significant tools used by companies when they report their financial statements and list their assets. What is the difference between amortization and depreciation? How do these tools work? Khan of the Khan Academy explains with a side-by-side comparison.

From this video, you’ll understand:

  • One method companies can use to account and pay for assets over time
  • The difference between amortization and depreciation