The word amortization comes from the Latin roots that means "action and effect of reducing until it dies" is made up of its lexical components that are "mortis" which means "death", "izare" which is "to convert into" and the suffix "tion" is said to be "action and effect". Amortization is the accounting display of the loss of value or devaluation in an invariable way, because amortization is reductions of assets or liabilitieswhich are those that are reflected in the accounting system either by the change in prices in the market or other reductions in value, among others.
The depreciation in the area of finance and economy differs because a distributed value or cost in a given period, which is what is intended to lessen the impact of the depreciation in the general economy. When amortization is mentioned, it is when it is an asset or a liability for finances, that means that the objective of amortization is to assign a large value over a duration of various periods or time periods.
On the other hand, it can be said that the amortization of a passive value is the return of a loan or a bank loan acquired in order to have a certain good or product. The amortization is the financial procedure that ends a debt each time you make a payment, each such payment or fee that is delivered, helps pay interest and thus be able to reduce the amount of debt.
