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 interest expense 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) Postings to the accounts payable ledger should be made at the end of the month only.
a. True
b. False
Indicate whether the statement is true or false
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Q. 3) Miss Happ of Ace Electronics forgot to make the adjusting entry for supplies used during the accounting period. As a result of this mistake ________.
A) total liabilities are too low
B) net income is too high
C) net income is too low
D) shareholders' equity is too low
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Q. 4) Cash equivalents
a. are illegal in some states
b. will be converted to cash within two years
c. will be converted to cash within 90 days
d. will be converted to cash within 120 days
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Q. 5) The amount of interest revenue recorded during a single month on a 6, 3-month note receivable will be the same as the interest revenue on a 6, 6-month note receivable.
Indicate whether the statement is true or false
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Q. 6) Dollar totals represent a summarization of any numeric data field within the input document or record.
Indicate whether the statement is true or false
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