Amortization schedule is:
A)a breakdown of the loan payment which includes the interest rate and number of years for the loan to be paid.
B)a breakdown of all fixed assets with their depreciation schedule.
C)a schedule the company has to provide the bank as part of their financial statements.
D)All of the above

Question

Quizplus · Accepted Answer

An amortization schedule is a breakdown of loan payments which includes the interest rate and the number of years for the loan to be paid. It shows how each payment is allocated between paying off the principal and paying the interest. Option B is incorrect because it refers to a fixed asset schedule, not an amortization schedule. Option C is incorrect because an amortization schedule is not necessarily provided as part of a company's financial statements, although it may be required by the lender.

Amortization Schedule Is