How Does the Amortization of the Principal Balance on an Installment

question 77

Multiple Choice

How does the amortization of the principal balance on an installment note payable affect the amount of interest expense recorded each succeeding year?

• A)Reduces the amount of interest expense each year
• B)Increase the amount of interest expense each year
• C)Has no effect on interest expense each year
• D)Cannot be determined from the information provided

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