Answered: An installment note is a liability…

Business

Accounting

An installment note is a liability requiring a series of payments to the lender. True or False True False

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

### Understanding Installment Notes

An installment note is a type of liability that requires a borrower to make a series of scheduled payments to a lender. This obligates the borrower to repay the borrowed amount along with any agreed-upon interest over a predetermined period.

#### True or False

**Statement:**
"An installment note is a liability requiring a series of payments to the lender."

Please choose the correct option:

- **True**
- **False**

---

This quiz is designed to test your understanding of installment notes. Select "True" if you believe the statement is correct, indicating that an installment note indeed involves a series of payments. Select "False" if you think otherwise.

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