Which of the following describes monthly installment payments of a note payable?

Which of the following describes monthly installment payments of a note payable?



A) The monthly payments equal interest expense plus the reduction of the note's carrying value.

B) The amount of interest expense recorded each month increases over time.

C) The amount of the reduction in the note's carrying value recorded each month decreases over time.

D) All of the other answer choices are correct.


Answer: A


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