Talk:Amortization (accounting)

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This definition doesn't work

"In business, amortization refers to spreading payments over multiple periods." Not when applied to amortization of assets –– no payments are involved. I will think of a better form of words. Toby64 (talk) 17:05, 11 November 2020 (UTC)[reply]

Wrong

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Something is very wrong here. The first formula has no equals sign and no variable fo

This article is very technical. Please try to add more clarification. --65.170.158.66 14:07, 13 June 2007 (UTC)[reply]

I don't mean to quibble, but...

There's a saying: "Anything is possible when you don't know what you're talking about." In that sense, part of learning is limiting an amorphous cloud of effectively limitless possibilities to a functioning structure limited only to what is or what could be useful. I admit, I looked this article up because I don't know what I'm talking about, but that's what the article's for: people who don't know what they're talking about look it up and learn something. Amortization is a human institution, and, being so, is subject to whatever rules humans apply to it, so, unlike a physical body, it can have pretty much any feature whatsoever. This leaves a great opening for confusion among the uneducated.

I've noticed something that seems confusing to my lay sensibilities: the article begins: "In business, amortization is the distribution of a single lump-sum cash flow into many smaller cash flow installments[…]" It strikes me that, by definition, a single lump-sum cash flow can't be distributed into smaller installments. If it is a cash flow, then the cash is flowing, and if it is a single lump-sum, cash flows only once; as soon as cash starts flowing, it stops flowing instantaneously or at most as long as it takes to process the one transaction. Defining it as "the distribution of a single lump-sum cash flow into many smaller cash flow installments" reads a little like "to drink is to remove liquid from the empty, filled glass."

Should it be worded something like, "the distribution of what would otherwise be a single lump-sum cash flow into many smaller cash flow installments"? You know what I mean? —Preceding unsigned comment added by DTM (talk • contribs) 17:34, 25 October 2010 (UTC)[reply]

Done, thanks for pointing out the problem. - Fayenatic (talk) 12:59, 18 April 2011 (UTC)[reply]

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Proposed merge of Amortization into Amortization (business)

Same meaning, both in life and in the accounting field. MoJieCPD (talk) 15:08, 3 June 2022 (UTC)[reply]