A Final Loan Payment That Is Larger Than Previous Payments

question 73

Multiple Choice

A final loan payment that is larger than previous payments is called a

• A) balloon payment.
• B) budget payment.
• C) terminal payment.
• D) graduated payment.

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Definitions:

FICA Taxes Payable

Taxes that are due on employee and employer contributions to Social Security and Medicare.

Federal Income Taxes Payable

A liability account on the balance sheet representing the amount of income taxes a company owes to the government.

State Income Taxes Payable

This is a liability on a company's balance sheet representing the amount of income taxes owed to various state governments.

Payroll Liability Accounts

These accounts on the balance sheet represent obligations related to employee compensation, including taxes withheld, benefits, and wages yet to be paid.