When interest is calculated on the principal amount borrowed is known as what A. Annuity B. Simple interest C. Compound interest D. All of the above

Q: Premium on Bonds Payable has a debit balance. O is a contra account. is deducted from bonds payable…

A: is considered to be a reduction in the cost of borrowing.Explanation:Premium on Bonds Payable refers…

Q: The interest on a non-interest bearing note is equal to

A: A non-interest-bearing note is a type of debt on which the interest is not paid regularly. In the…

Q: Interest payment is: A. The effective interest rate times the amount of the debt outstanding during…

A: Debt :— It is the amount borrowed for specific time period. Example:- Bonds payable, Notes payable,…

Q: Using the formula Interest = Principal x Rate x Time, if all elements are known except for the…

A: Simple interest rate is most easy and quick method method of interest calculation. Simple interest…

Q: Explain in general terms how the portions of loan payments going to principal and interest change…

A: Installment loans gradually pay down the loan principal while the payments remain the same .…

Q: the final or future value of an investment the compounding periods of a loan or investment the value…

A: The final or future value of an investment is called amount. The compounding periods of a loan or…

Q: Give and explain the factors that affect the interest rate on the loan

A: Following are the factors that affect interest rate on the loan:  1. Supply and Demand Interest…

Q: which of the followings is considered as long term liability :Select one .a mortgage payable .b…

A: a. mortgage payable is the right answer. Other option are incorrect as they are short term…

Q: nterest is a method of calculating the interest to be paid on a loan by combining the principal…

A: Add on interest refers to the method which is used when the person acquire the loan or the mortgage…

Q: Which one of the below most likely respresents the periodic receipts of interest? O the coupon rate.…

A: Periodic payments means fixed amount paid regularly to the investor. Example interest amount on…

Q: If Valuation Allowance for Available-for-Sale Investments has a credit balance, how is it treated on…

A: Available-for-sales securities: These are short-term or long-term investments in debt and equity…

Q: When the total interest charged is linearly proportional to the initial amount of the loan, the…

A: Interest is an additional amount that is charged on deposited amount for a period. Interest is an…

Q: HOW TO Find the finance charge of an installment loan.

A: Finance Charge: Generally speaking, financial charges are any fees or charges associated with…

Q: The total that must be paid when a note becomes due is known as the note value. maturity value. face…

A: A Note is a Debt Instrument. It accrues interest on the principal value and the total amount due at…

Q: A loan borrowed by an individual secured against the personal property is. a. Character b.…

A: The provided options are known as the main Cs that a lender considers when providing a loan.…

Q: A finance charge includes which elements?

A: Finance charge is a very common occurrence associated with the use of credit. For example users of…

Q: A forward rate is a borrowing/lending rate for a loan to be made at some future date.   Select…

A:

Q: interest payment for bonds is calculated using the face value of the bonds and the __________   A.…

A: Bonds payable are one of the sources of finance and are shown as liability. If the interest rate is…

Q: Notes receivable should be stated at amortized cost which is equivalent to its present value which…

A: The Amortised cost is the present value of cash inflows from note receivable using an effective…

Q: What is the treatment of transaction costs from issuance to a bond payable measured using the…

A: Transaction costs: Transaction costs also known as issue costs, are those costs that are incurred…

Q: a. F=1500.23 JOD b. F=1550.45 JOD c. F=1610.51 JOD d. F=1350.80 JOD

A: Future value can be found by interest rate and period given by future value formula.

Q: 4. What best describes the discount on bonds payable account? a.An asset b.A liability c.An expense…

A: Discount on bonds payable account is used when a bond is issued at discount.

Q: Notes Receivable with an Effective and Nominal Rate should report interest expense as?   Effective…

A: Solution: Notes Receivable with an Effective and Nominal Rate should report interest expense as…

Q: In the case of installment notes, interest expense is calculated as a constant percentage of the…

A: Explanation: That's correct; interest expense on installment notes is indeed calculated as a…

Q: When accounting for a bond whose interest is included in the face amount, the account Discount in…

A: Discount in Bond payable Issue of bond which can be incurred in between face value, discount and…

Q: Bonds Payable is a type of current liabilities. True False

A: Bonds payable is a liability for the business, it means amount of bonds that the company has to…

Q: perlod of a loan or investment

A: Compounding period and period of loan are interrelated to each other.

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: What is the process of calculating the remaining balance of different types of loans?

A: The remaining balance of a credit plan equation can be part of two sections, the future estimation…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: what is difference between a bond and a term loan? what are the advantages of a term loan over a…

A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…

Q: Explain the accounting for long-term notes payable.

A: Notes payable: Notes payable is a written promise to make payment for specific sum at a certain…

Q: It is the fractional part of the capital or sum invested that is paid for the loan or investment.…

A: 1. The rate of interest is some predecided percentage that is charged on the loan amount or provided…