In the US Rule, the Partial Payment First Covers the Interest and Interest

question 67

True/False

In the U.S. Rule, the partial payment first covers the interest and the remainder reduces the principal.

---

Definitions:

Personal Expenses

Out-of-pocket expenses related to the individual needs of a person rather than business expenses.

Operations

Activities and tasks involved in the day-to-day running of a business or system, focusing on producing and delivering products or services.

Asset Decrease

A reduction in the value or quantity of an asset, which can affect a company's balance sheet and overall financial health.

Asset Increase

An increase in the economic value or utility that an asset brings to a company.