Answer:
Amortized loan
Explanation:
An amortized loan is a loan with scheduled periodic payments that are applied to both principal and interest. An amortized loan payment first pays off the relevant interest expense for the period, after which the remainder of the payment reduces the principal.
Interest is calculated based on the most recent ending balance of the loan and the interest amount owed decreases as payments are made. This is because any payment in excess of the interest amount reduces the principal, which in turn, reduces the balance on which the interest is calculated.
Answer:
The financial statements effects of the appropriation are as follows:
a) Retained Earnings will reduce by $65,000 in the Income Statement and the Balance Sheet.
b) Cash balance will also reduce by $65,000 in the Balance Sheet.
Explanation:
Normally, partnerships can distribute or appropriate their profits according to their partnership agreements. However, there may be restrictive loan covenants that can specify how much profits partnerships can distribute among the partners. The purpose of such covenants is to ensure that the ability of the partnership to repay loans are not compromised through profit appropriations.
Financial institutions, therefore, to secure the loans advanced to businesses may include restrictive covenants. Some restrictive covenants may specify the minimum cash balance to maintain. Restrictive covenants, generally, remain measures to overcome unwanted business outcomes. It is a form of insurance against loan repayments.
This kind of person in business terminology is called a free rider.
Research skills
(Time management is lower on the totem pole while the other 2 are on the bottom)
