We Add Amortization to Net Income to Arrive at a True

question 28

True/False

We add amortization to net income to arrive at a true profit picture.

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Definitions:

Installment Note

A debt that requires regular payments, or installments, of principal and interest until it is paid off.

Present Value

The present value of a future amount of money or series of cash flows, discounted at a certain rate of return.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of retirement strategy.

Mortgage Contracts

Legal agreements that outline the terms and conditions of a loan secured by property.