When a long-term note payable has periodic instalment payments on fixed dates, it means that
A)the principal can be paid down at any time.
B)the periodic payment decreases over time.
C)the payment consists of interest on the unpaid balance of the loan at the beginning of the period.
D)the payment does not include any portion of the loan principal..

Question

Quizplus · Accepted Answer

When a long-term note payable has periodic installment payments on fixed dates, each payment typically includes interest on the unpaid balance of the loan at the beginning of the period. This means that part of each payment goes towards paying off the interest accrued, while the remainder reduces the principal amount of the loan.

When a Long-Term Note Payable Has Periodic Instalment Payments on Fixed