The Following Partial Amortization Schedule Is Available for Courtney Company

question 165

Multiple Choice

The following partial amortization schedule is available for Courtney Company who sold $500,000, five-year, 10% bonds on January 1, 2014 for $520,000 and uses annual straight-line amortization. Which of the following amounts should be shown in cell (iv) ?

• A) $22,000
• B) $18,000
• C) $24,000
• D) $16,000

Identify and classify types of assets and liabilities in a business context.

Understand the concept and usage of commercial paper and other short-term financing instruments.

Recognize the role of collateral in securing loans and its implications for businesses.

Understand the mechanisms of trade credits and lines of credit as methods of financing.

---

Definitions:

Rating Scale

A set of categories designed to elicit information about a quantitative or qualitative attribute.

Service

The action of helping or doing work for someone, often refers to intangible goods offered by businesses.

Excellent

A term used to describe something of very high quality.

Quantitative Data

Information that can be measured and written down with numbers, including any data that is about numeric variables.