Talk:Amortization (accounting)

	Business portal This article is within the scope of WikiProject Business, a collaborative effort to improve the coverage of business articles on Wikipedia. If you would like to participate, please visit the project page, where you can join the discussion and see a list of open tasks.BusinessWikipedia:WikiProject BusinessTemplate:WikiProject BusinessWikiProject Business articles
Mid	This article has been rated as Mid-importance on the project's importance scale.
	This article is supported by the Accounting task force.

This definition doesn't work[edit]

"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[edit]

ɳÜ

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...[edit]

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]

External links modified[edit]

Hello fellow Wikipedians,

I have just modified one external link on Amortization (business). Please take a moment to review my edit. If you have any questions, or need the bot to ignore the links, or the page altogether, please visit this simple FaQ for additional information. I made the following changes:

Added archive https://web.archive.org/web/20120325190453/http://tech-bie.blogspot.com/2011/07/what-is-emi-equated-monthly-installment.html to http://tech-bie.blogspot.com/2011/07/what-is-emi-equated-monthly-installment.html

When you have finished reviewing my changes, you may follow the instructions on the template below to fix any issues with the URLs.

This message was posted before February 2018. After February 2018, "External links modified" talk page sections are no longer generated or monitored by InternetArchiveBot. No special action is required regarding these talk page notices, other than regular verification using the archive tool instructions below. Editors have permission to delete these "External links modified" talk page sections if they want to de-clutter talk pages, but see the RfC before doing mass systematic removals. This message is updated dynamically through the template {{source check}} (last update: 18 January 2022).

If you have discovered URLs which were erroneously considered dead by the bot, you can report them with this tool.
If you found an error with any archives or the URLs themselves, you can fix them with this tool.

Cheers.—InternetArchiveBot (Report bug) 04:58, 4 July 2017 (UTC)[reply]

Proposed merge of Amortization into Amortization (business)[edit]

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

@MoJieCPD: I agree that Amortization is a strange page; it should really be a disambiguation page. Furthermore, the meaning of the term in accounting should be separated from the usage of the term in loans.

I would propose the following procedure:

1) Turn Amortization into a dab.

2) Merge the section Amortization (business)#Amortization of loans into Amortizing loan.

3) Move this page to Amortization (accounting).

Do you have any thoughts on this? Felix QW (talk) 20:39, 16 September 2022 (UTC)[reply]

Since there seems to be no opposition, I implemented the plan above. Felix QW (talk) 18:25, 7 October 2022 (UTC)[reply]