Asked by Elisa Davis on May 09, 2024
Verified
Liabilities with instalment payments are repayable in
A) equal periodic amounts plus interest.
B) varying periodic amounts plus interest.
C) equal periodic amounts including interest.
D) varying periodic amounts including interest.
Instalment Payments
Payments made regularly over a period of time to settle a debt.
Periodic Amounts
Regularly scheduled payments or receipts over a defined period.
Interest
The cost of borrowing money or the return on investment for savings and investments, typically expressed as an annual percentage rate.
- Grasp the definitions and characteristics of liabilities, specifically focusing on instalment payments and their impact on financial statements.
Verified Answer
AF
alberto fernandezMay 13, 2024
Final Answer :
C
Explanation :
Liabilities with installment payments are typically structured so that each payment includes both a portion of the principal amount borrowed and the interest, resulting in equal periodic amounts.
Learning Objectives
- Grasp the definitions and characteristics of liabilities, specifically focusing on instalment payments and their impact on financial statements.