1. When a mortgage has a fixed monthly payment amount, the amount of that payment that is applied towards principal each month will ___________ and amount applied towards interest will _______.

Increase; decrease

Decrease; increase

Increase; increase

Decrease; decrease

2. The methodology for account for the investment in another company's bonds is determined by ___________.

a) The total value of the other company's bonds b) The length of the other company's bonds c)The amount of time your company believes it will reasonably hold onto the other company's bonds for d) Whether the other company's bonds are secured or not

3. ABC Company issued bonds at a bond price of 90. This issuance would require the company to create a ___________ on bonds payable account.

a) Premium b) Discount c) Differential d) Dividend

4. ABC Company issues bonds at a bond price of 110. This purchase would require ABC Company to use a ___________ on bonds payable account.

a) Premium b) Discount c) Differential d) Dividend

5. The "cutoff" point that the public must own shares of a company's stock by if they wish to receive a dividend in the future is referred to as _________.

The date of authorization

The date of declaration The date of record The date of payment