What is the difference between depreciation and amortization?

Question

ObjectiveMcq · Accepted Answer

Depreciation is the systematic allocation of the cost of a tangible asset over its useful life, while amortization is the systematic allocation of the cost of an intangible asset over its useful life

ObjectiveMcq · Answer

Depreciation is the decrease in the market value of an asset, while amortization is the increase in the market value of an asset

ObjectiveMcq · Answer

Depreciation is applicable to tangible assets, while amortization is applicable to intangible assets

ObjectiveMcq · Answer

Depreciation is a non-cash expense, while amortization is a cash expense