Which of the following is an example of amortization?

Amortization refers to the process of gradually paying off a debt over time through scheduled, fixed payments that cover both principal and interest. In the context of a car loan, option B exemplifies amortization because when you make monthly payments toward the loan, each payment reduces the principal balance over time until the loan is fully paid off. This structure ensures that the borrower knows exactly how much they need to pay each period.

The other options do not represent amortization. The annual interest payment on a loan is simply a cost of borrowing and does not reduce the principal. The purchase of property is an asset acquisition rather than a payment process. The firm's quarterly revenue report provides information about income but is unrelated to the process of repaying a debt. Thus, option B accurately describes an amortization scenario through its gradual payment structure associated with a specific loan.