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A(n) ____ shows the beginning and ending balances and the amount of payment that is applied to the principal and interest during each payment period.

a) Amortization Schedule
b) Cash Flow Statement
c) Income Statement
d) Balance Sheet

1 Answer

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Final answer:

The answer to the question is an 'Amortization Schedule,' which details payment allocation to principal and interest for each payment period.

Step-by-step explanation:

The correct answer to the student's question is a) Amortization Schedule. An amortization schedule is a table that details each periodic payment on a loan, showing the amounts allocated to principal and interest and the remaining balance after each payment. Unlike a balance sheet, which lists a company's assets and liabilities at a single point in time, or an income statement that shows revenues and expenses over a period, an amortization schedule applies specifically to the breakdown of loan payments over time.

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