Home > Business > Detail
search_icon
Question

As payments are made on a note payable, interest expense decreases and the principal balance:____. a. increases b. may increase or decrease c. decreases d. does not change

Answer

As payments are made towards a note payable, the corresponding interest expense and principal balance reduce. What exactly is a note payable? It is a form of long-term liability that reflects the amount of money a company owes to its financiers, including banks, financial institutions, as well as personal sources of funds like friends and family. Thus, Option C is the correct choice. For further information on note payable, visit brainly.com/question/25148915 #SPJ1.