Business 101: What Do The Terms Appreciation, Administrative Expenses, And Amortization Mean?

There are some basics about business that most business owners are afraid to admit that they really don’t know or understand.

Well, here at 2BH we’re going to give you the answers to the questions you might have been too embarrassed to ask.

Here are the terms for today:

Appreciation is an asset’s increase in value over time.

Administrative expenses are any expenses related to managing your business that are not related to sales or any cost-of-goods-sold.

Amortization is the length of time that the repayment of a debt is calculated.

Photo by Andres Rueda

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