Which term refers to gradually writing off the initial cost of an asset?

The term that refers to gradually writing off the initial cost of an asset is "amortized." This accounting method applies to intangible assets, such as patents or copyrights, where the cost is spread over the useful life of the asset. This allows a business to match expenses with the revenue generated from using the asset over time.

In contrast, "depreciated" specifically relates to tangible assets like machinery or buildings. While depreciation and amortization serve similar purposes in allocating costs over time, they apply to different types of assets. The term "adequate return" generally refers to the profit necessary to compensate for the risk of investment, rather than the process of cost allocation. "Liquidated," on the other hand, relates to the process of converting assets into cash, typically during the cessation of business operations or a bankruptcy sale, rather than the method of writing off costs. Therefore, the most suitable term for writing off the initial cost of an asset is "amortized," particularly when discussing intangible assets.