1. When a long-term note payable with a fixed interest rate has fixed principal payments, it means that:

a. the periodic payment amount is fixed.

b. the periodic payment increases over time.

c. the periodic payment decreases over time.

d. no conclusion can be made on the periodic payment.

2. As blended principal and interest payments are made on a long-term loan

a) the interest portion increases and the principal portion decrease

b) the interest and principal portions remain the same

c) the interest portion decreases and the principal portion increase

d) both the interest portion and the principal portion decrease

3.the relationship between current assets and current liabilities is

a) useful in determining profitability

b)useful in evaluating a company's liquidity

c) useful in evaluating a company's solvency

d) useful in determining the amount of a company's non-current debt

4.Roofer's Inc. had an operating line of credit of $100,000 and overdrew its bank balance to result in a negative cash balance of $33,000 at year-end. This would be reported in the statement of financial position as

a) A current liability of $33,000

b) A non-current liability of 67,000

c) A current asset of $67,000

d) A current asset of $33000