Amortizable is a term that is commonly used in the field of finance and accounting. It refers to the process of spreading out the cost of an asset over its useful life. This means that the cost of the asset is gradually reduced over time, rather than being written off all at once. In this article, we will explore the definition and meaning of amortizable in detail.
Definitions
The term amortizable is defined as the ability to be gradually paid off over time. It is commonly used in the context of loans, where the borrower pays back the principal and interest over a period of time. In accounting, it refers to the process of gradually reducing the value of an asset over its useful life.
Origin
The word amortizable comes from the French word “amortir,” which means to extinguish a debt. The term was first used in the 17th century to describe the process of paying off a debt over time.
Meaning in different dictionaries
According to Merriam-Webster, amortizable means “capable of being amortized.” The Oxford English Dictionary defines it as “able to be gradually reduced or paid off over a period of time.”
Associations
Amortizable is commonly associated with loans, mortgages, and other forms of debt. It is also used in accounting to describe the process of depreciating assets over time.
Synonyms
Some synonyms of amortizable include:
- Depreciable.
- Diminishing.
- Gradual.
- Reducing.
- Retiring.
Antonyms
Some antonyms of amortizable include:
- Lump sum.
- Immediate.
- One-time.
- Fixed.
- Non-reducible.
The same root words
Some words that share the same root as amortizable include:
- Amortization.
- Amortize.
- Amortizement.
Example Sentences
- The loan is amortizable over a period of 5 years.
- The company’s assets are being amortized over their useful life.
- The amortizable value of the car is $10,000.
- The amortizable cost of the building is $1 million.
- The accountant recommended amortizing the cost of the equipment over 3 years.