On January 1, 2013, Thames Company Purchases Property and Signs

question 95

Multiple Choice

On January 1, 2013, Thames Company purchases property and signs a 6-year mortgage note for $60,000 at 4%. Please see the partial amortization schedule below. At January 1, 2013, what portion of the balance of the mortgage payable should be shown as a current liability?

• A)$11,760.00
• B)$9,533.52
• C)$2,226.48
• D)$50,466.48

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Definitions:

Annual Time-Series

A sequence of data points recorded or measured at successive time intervals, each interval being one year, used to analyze trends over time.

Moving Averages

A mathematical method that examines time series information by generating a sequence of means from various segments of the entire data set.

Seasonal Variation

It refers to periodic fluctuations in data or observations that occur regularly based on seasonal changes throughout the year.

Cyclical Movement

Refers to the fluctuating trends in economic variables or indicators that follow the cyclical ups and downs of the economy over time.