Difference between amortized and unamortized expenses

Open in App

Solution

Dear Student,
While borrowers pay back principal and interest on amortized debt in their monthly payment schedule, unamortized debt only requires them to pay on their interest.
Regards

Suggest Corrections

Similar questions

Non-cash expenses like depreciation, depletion & amortization expense are _______ to net profit before tax under indirect method.

Under which major head of the Statement of Profit and Loss of a Company following items will appear :

(i) Bonus

(ii) Revenue from Services rendered

(iii) Internet Expenses

(iv) Materials Purchased

(v) Discount on Issue of Debuntures written off

(vi) Goodwill Amortized.

Out of the following, identify the items to be shown in the Notes to Accounts on 'Other Expenses' :

(i) Rent for factory

(ii) Internet Expenses

(iii) Carriage Inwards

(iv) Salaries

(v) Leave Encashment Exp

(vi) Commission Allowed;

(vii) Bad Debts written off

(viii) Audit fee

(ix) Depreciation on Computers

(x) Computer Software amortized

Join BYJU'S Learning Program