A borrower obtained a $7,000 second mortgage loan for 5 years at 6 percent interest per annum. Monthly payments of principal and interest were $50. The final payment included the remaining outstanding principal balance. What type of loan is this?

When depreciation is computed for partial periods under a decreasing charge depreciation method, it is necessary to

a. charge a full year's depreciation for the year of acquisition b. determine depreciation expense for the full year and then prorate the expense between the two periods involved c. use the straight-line method for the year in which the asset is sold or otherwise disposed of d. use a salvage value equal to the first year's partial depreciation charge

A channel of distribution is defined as a group of individuals and organizations that

a) consumes about one-half of every dollar spent on products in the United States. b) directs the flow of products from producers to customers. c) links producers to other marketing intermediaries. d) takes title to products and resells them. e) manages transportation and warehousing functions.