A borrower must allocate mortgage repayments between:
A) interest expense and interest revenue.
B) interest expense and loan liability.
C) interest revenue and loan liability.
D) loan liability and shareholders' equity.

Question

Quizplus · Accepted Answer

As each mortgage payment is made up of both interest and principal, a borrower must allocate mortgage repayments between interest expense and loan liability.

A Borrower Must Allocate Mortgage Repayments Between