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IFB17: Cash Flow Statement: Operating Activities, Investing, and Financing
The Investing for Beginners Podcast - Your Path to Financial Freedom
Amortization Unlocks Asset Value
Amortization allows businesses to systematically write off the cost of an asset over a defined period, enhancing tax efficiency. By assigning a fixed annual deduction to an asset's purchase price, organizations can effectively manage their cash flow, ultimately facilitating future investments as the asset value is depleted. This financial strategy not only addresses tax implications but also supports better asset management.
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