Examlex
Which of the following is typically used as the base in a vertical analysis of an income statement?
Balloon Payment
A large, one-time payment made at the end of a loan term to pay off the remaining balance, typically used in mortgage or bond agreements.
Principal
The initial amount of money borrowed or invested, excluding any interest or dividends.
Interest-Only Loan
A loan where the borrower pays only the interest on the principal balance for a set term while the principal amount remains unchanged.
Entire Principal
Entire Principal refers to the total amount of a loan or debt that is owed or borrowed, excluding any interest or additional fees.
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