How Does the Amortization Schedule for an Installment Note Such

question 25

Multiple Choice

How does the amortization schedule for an installment note such as a car loan differ from an amortization schedule for bonds?

• A)The final carrying value is zero in an amortization schedule for an installment note.
• B)The final carrying value is zero in an amortization schedule for bonds.
• C)The final carrying value is zero in both amortization schedules.
• D)The final carrying value is not zero in either amortization schedule.

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Definitions:

Ending Work

Refers to the work in process (WIP) at the end of an accounting period, used in calculating the cost of goods manufactured.

Equivalent Units

A concept used in process costing, converting partially finished goods into a number of completed units for accounting purposes.

Physical Units

A measure used in various contexts, referring to countable, tangible objects or units of measurement in physical systems.

Transferred Out

Costs or materials moved from one department, process, or location to another in the course of manufacturing or accounting.