1. When a financial manager studies current reports and compares them with reports from earlier periods to see if established plans are being followed, these reports are called:
a) subsidiary reports.
b) the general ledger.
c) feedback.
d) All of these are correct.
2. True or False? A small company with common stock that is not traded is known as a privately held company.
3. Assume that Payment #1 totals $1,600 ($1,200 principal and $400 interest expense); Payment #2 totals $1,600 ($1,300 principal and $300 interest expense); and the remaining principal balance before these two payments is $50,000. If the amortization schedule's "Remaining Principal Balance" column prior to these payments amounts to $50,000, what is the balance in the column after these payments?
a) $47,500
b) $52,500
c) $53,200
d) $46,800