Which of the Following Statements Is True

question 43

Multiple Choice

Which of the following statements is true?

• A)With instalment payments on a non-current note payable, the principal portion decreases each period.
• B)With instalment payments on a non-current note payable, the interest portion decreases each period.
• C)With instalment payments on a non-current note payable, the interest portion does not change each period.
• D)With instalment payments on a non-current note payable, the interest portion increases each period.

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Definitions:

Interest

The cost of borrowing money, usually expressed as a percentage of the amount borrowed, over a specific period of time.

Government

The system or group of people governing an organized community, often a state, including institutions and individuals that hold the authority to make laws and regulations.

Per Stirpes

A legal term describing a method of distributing an estate whereby each branch of the deceased's family receives an equal share of the estate.

Estate

The total of all the assets, properties, and liabilities that a person leaves behind upon death.