Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'amortization'?

A. the process of reduction of debt or other costs through periodic charges to assets or liabilities, such as through principal payments on mortgages
B. role played by any agent
C. amortization in which the very last payment the last payment due may be a large balloon payment of all remaining principal and interest
D. role that associates resources and participants to a structured set of activities involving various enterprise entities, that is designed and organised for a given purpose

Answer: the process of reduction of debt or other costs through periodic charges to assets or liabilities, such as through principal payments on mortgages