The Term Amortized Refers to

question 23

Multiple Choice

The term amortized refers to

• A)the method by which interest is calculated in a loan contract.
• B)the repayment of a loan through a series of equal payments.
• C)the loan maturity date in a loan contract.
• D)the term contracted to pay off a loan.

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Definitions:

Current Year

The ongoing calendar year or fiscal year in which a business is operating.

FOB Shipping Point

A term used in shipping contracts indicating that the buyer is responsible for the goods and the shipping cost from the moment they leave the seller's premises.

Physical Inventory

The process of counting by hand the actual inventory available in a business at a specific time, typically done periodically.

Cost of Inventory

The total expense to purchase and manage inventory stocks, including purchase costs, shipping, handling, and storage.