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Amortization
Amortization refers to the process of writing off the cost of an intangible asset (e.g., patents, trademarks, goodwill) over its useful life. This expense is spread out evenly over the asset's estimated lifespan.
Depreciation
The process of allocating the cost of a tangible asset over its useful life to account for wear and tear, obsolescence, or usage.
Investment
The purchase of non-current assets (e.g., machinery, property) or financial assets (e.g., stocks, bonds) with the expectation of generating future returns.
Profit
The financial gain obtained when revenue exceeds expenses, can be classified as gross profit, operating profit, or net profit.