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Problem 1: Identify the types of information that can readily be determined from an amortization table for an installment loan. (More than one answer may be correct.)
a. Interest expense on this liability for the current year.
b. The present value of the future payments under changing market conditions.
c. The unpaid balance remaining after each payment.
d. The portion of the unpaid balance that is a current liability.
Problem 2: To be classified as a current liability, a debt must be expected to be paid:
a. out of existing current assets.
b. by creating other current liabilities.
c. within 2 years.
d. both (a) and (b).
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