What is the main purpose of amortization in accounting?

Amortization in accounting primarily serves the purpose of systematically charging the costs associated with a limited life asset over its useful life. This method allows businesses to allocate the expense of the asset as it is used in operations, rather than recording the full cost as an expense in the period when the asset was purchased. By doing so, it aligns the expense recognition with the revenue the asset generates, adhering to the matching principle in accounting. This systematic approach facilitates better financial analysis and reporting, helping stakeholders understand the ongoing costs related to asset usage throughout its lifespan.

Other options, while related to financial processes, do not accurately capture the essence of amortization. For instance, increasing an asset's value over time, writing off debts, or maximizing reported income for tax purposes are not aligned with the primary goal of amortization, which focuses specifically on the allocation of costs associated with the depreciation of limited life assets.