Which of the following statements is/are correct? 1. The principal but not the interest to be...

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Finance

Which of the following statements is/are correct?
1. The principal but not the interest to be paid this year on a30-year mortgage is properly
      classified on the Statement ofFinancial Position as a current liability.
2. A CD with a maturity of 9-months is classified as aninvestment asset on the Statement of
      Financial Position.
Select one:
a. a.   1 only.
b. b.   2 only.
c. c.   Both 1 and 2.
d. d. Neither 1 nor 2.
Question 12
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Which of the following statements is/are correct?
1. Net worth represents the personal equity that the individualhas in his assets and can never be
less than zero.
2. If Lisa purchased a car using 30% cash and 70% debt, her networth would increase by 30%.
Select one:
a. a.   1 only.
b. b.   2 only.
c. c.   Both 1 and 2.
d. d. Neither 1 nor 2.
Question 13
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Which of the following statements is/are correct?
1. Property titled Joint Tenants with Rights of Survivorship(JTWROS) can only be owned by
married couples.
2. Property titled Tenants by the Entirety can only be owned bymarried couples.
Select one:
a. a.   1 only.
b. b.         2only.
c. c.   Both 1 and 2.
d. d. Neither 1 nor 2.

Answer & Explanation Solved by verified expert

3.7 Ratings (737 Votes)

Answer 1 Correct answer is a 1 only Explanation Current portion of long term debt is classified as current liability Periodic mortgage payment has both interest and principal components Only principal component is considered liability The interest portion is an expense Hence the principal but not the interest to be paid this year on a 30year mortgage is properly classified on the See Answer

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Which of the following statements is/are correct?1. The principal but not the interest to be paid this year on a30-year mortgage is properly classified on the Statement ofFinancial Position as a current liability.2. A CD with a maturity of 9-months is classified as aninvestment asset on the Statement of Financial Position.Select one:a. a. 1 only.b. b. 2 only.c. c. Both 1 and 2.d. d. Neither 1 nor 2.Question 12Not yet answeredPoints out of 1.00Flag questionQuestion textWhich of the following statements is/are correct?1. Net worth represents the personal equity that the individualhas in his assets and can never beless than zero.2. If Lisa purchased a car using 30% cash and 70% debt, her networth would increase by 30%.Select one:a. a. 1 only.b. b. 2 only.c. c. Both 1 and 2.d. d. Neither 1 nor 2.Question 13Not yet answeredPoints out of 1.00Flag questionQuestion textWhich of the following statements is/are correct?1. Property titled Joint Tenants with Rights of Survivorship(JTWROS) can only be owned bymarried couples.2. Property titled Tenants by the Entirety can only be owned bymarried couples.Select one:a. a. 1 only.b. b. 2only.c. c. Both 1 and 2.d. d. Neither 1 nor 2.