Liabilities with Instalment Payments Are Repayable in

question 35

Multiple Choice

Liabilities with instalment payments are repayable in

• A) equal periodic amounts plus interest.
• B) varying periodic amounts plus interest.
• C) equal periodic amounts including interest.
• D) varying periodic amounts including interest.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of the company.

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing ownership equity in a corporation.

Indirect Method

In accounting, this method is used in cash flow statements to convert net income into net cash flow from operating activities by adjusting for non-cash transactions.

Accounts Receivable

Financial obligations of customers to a firm for delivered or utilized goods or services awaiting payment.