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Amortization and Depreciation: CNBC Explains

CNBC Explains
Thursday, 16 Jun 2011 | 10:47 AM ET
Amortization and Depreciation: CNBC Explains
In accounting terms, amortization and depreciation are significant tools for companies when they report their financial statements and list assets. Salman Khan of the Khan Academy explains these concepts with a side-by-side comparison.

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

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