An Amortized Loan Is a Loan That Requires Equal Payments

question 6

True/False

An amortized loan is a loan that requires equal payments over its life; its payments include both interest and repayment of the debt.

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Definitions:

Payee

The individual or entity to whom a payment is to be made or credited.

Allowance Account

A contra-asset account used to record adjustments to accounts receivable, reflecting the amounts expected not to be collected.

Uncollectible

Refers to accounts receivable that are considered to be uncollectable from debtors due to their inability to pay.

Credited

A term used in accounting to denote an increase in liabilities or equity accounts, or a decrease in assets or expense accounts.