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Commerce · Q333

Financial Management

Graduate and Post Graduate · Commerce · question 333

Q333

A schedule which shows interest constitutes reduced principal and unpaid balance is considered as

A.
repaid schedule
B.
depreciated schedule
C.
amortization schedule
Answer
D.
appreciated schedule

Answer: Option C

Solution

Answer: Option C
Solution:
A schedule which shows interest constitutes reduced principal and unpaid balance is considered as amortization schedule. An amortization schedule is a complete table of periodic loan payments, showing the amount of principal and the amount of interest that comprise each payment until the loan is paid off at the end of its term.