On January 1, 2011, Zenith, Inc, signed a 200,000, 5, 20-year mortgage note to buy a new office building. The mortgage will be repaid in a series of twenty equal annual installment payments.
Over the 20-year period, as each installment payment is made, the portion of the payment that is used to reduce the principal will ________.
A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.
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Q. 2) A dependency check authenticates the identity of a message's sender and verifies the integrity of a transmitted message.
Indicate whether the statement is true or false
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Q. 3) Notes receivable usually have a collection period that is longer than accounts receivable.
Indicate whether the statement is true or false
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Q. 4) The purchases discounts account is debited for cash discounts to customers.
a. True
b. False
Indicate whether the statement is true or false
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Q. 5) On October 15, Manx Company bought 400 shares of its own stock for 16 per share. Show how this transaction affects the accounting equation. Include both account titles and amounts.
Shareholders' equity
Assets Liabilities Contributed capital Retained earnings
What will be an ideal response?
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Q. 6) Pilger Corporation has cash on hand at year-end of 201,000 and a negative cash flow from operations of 144,000.What is the ratio of cash to monthly cash expenses?
a. 12.0 months
b. 7.2 months
c. 1.4 months
d. 16.8 months
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