To Account for a Down Payment, Adjust the ____ of the Loan

question 67

Multiple Choice

To account for a down payment, adjust the ____ of the loan by subtracting it from the loan amount.

• A) present value (pv)
• B) future value (fv)
• C) rate
• D) type

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Definitions:

Financial Statement

A written record that conveys the business activities and the financial performance of a company; main statements include balance sheet, income statement, and cash flow statement.

Temporary/Permanent

Refers to accounts within accounting practices; temporary accounts are reset each accounting period, while permanent accounts carry their ending balance into the next period.

General Journal Entries

The initial records where all financial transactions of a business are noted, using the double-entry method of accounting.

Account Balance

The amount of money in a financial repository at any given moment, which can include debts owed or credits available.