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Question 1: Under the equal total payments model for instalment notes
Multiple Choice
Option 1: Less interest expense is booked in comparison to the accrued interest and equal principal payment model
Option 2: The note payable is reduced in equal amounts with each payment made
Option 3: Equal interest expense is booked in comparison to the accrued interest and equal principal payment model
Option 4: More interest expense is booked in comparison to the accrued interest and equal principal payment model
Option 5: The note payable is not reduced in equal amounts with the final payment made
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