An amortization table ________. A. breaks each payment into the amount that goes toward interest and the amount that goes toward the principal B. is a special table used in a break room to make people feel equitable C. separates time value of money tables into present value and future value D. separates time value of money tables into single amounts and streams of cash
A. breaks each payment into the amount that goes toward interest and the amount that goes toward the principal
B. is a special table used in a break room to make people feel equitable
C. separates time value of money tables into present value and future value
D. separates time value of money tables into single amounts and streams of cash
Expert Solution & Answer
To determine
Concept introduction:
Amortization of Bonds discount or premium:
The Bonds can be issued at a discount or premium. The discount or premium on issue of bonds or the life of bonds is amortized using the effective rate methods or the straight line method.
To choose:
The correct statement about the amortization table.
Answer to Problem 1MC
Breaks each payment into the interest and principal component.
Explanation of Solution
Explanation for correct answer:
The amortization table breaks each payment into the interest and principal component. Hence the correct option is A.
Explanation for incorrect answers:
B. The amortization table does not break the room; it breaks the payment into the interest and principal component. Hence this option is incorrect.
C. The amortization table does not break the time value of money; it breaks the payment into the interest and principal component. Hence this option is incorrect.
D. The amortization table does not break the time value of money; it breaks the payment into the interest and principal component. Hence this option is incorrect.
Want to see more full solutions like this?
Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Evaluate the following statement.
Statement 1. compensating balance requirements as a result of long-term financing arrangements is reported under the cash and cash equivalents section of the balance sheet.
Statement 2: AN overdraft which resulted from an over withdrawal beyond the overdraft allowance may be reported as either current or concurrent liability
Statement 3: Certificates of deposits and money market savings certificates are examples of time deposits which may either be shown in ' cash and cash equivalents' line item or "investments" time.
a. All statements are correct
b. One statement is correct
c. Two statements are correct
d. All statements are incorrect
nu
messageQ&A
notifications
account_circle
Business
FinanceQ&A LibraryPlease classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change in Inventories Change in Accounts Payable Payment of cash dividends Change in Notes Payable Payment of long-term debt Change in marketable securities Net income Change in Account Receivables
Please classify each of the following accounts into its right category of cash flow activities. Which of the following item(s) belong to Operation Activities? (This question may contain multiple answers) Depreciation Fixed assets expenses Change…
Which of the following options indicate how quickly accounts receivables are converted into cash?
Select one:
a. Total assets turnover
b. Days to collect accounts receivable
c. Working capital
d. Accounts receivable turnover