Don't let the chumps in the accounting department brag about their mad amortization skills. Show them who's the boss with our amortization quiz.

### What was the original Old French meaning of the word "mortgage?"

- More money
- Death pledge
- Bad luck

### Amortization allows a borrower to pay off which two parts of the home loan with one fixed monthly payment?

- Principal and interest
- Interest and term
- Principal and term

### With amortization, if you pay $850 for your first mortgage payment, how much will you pay for your last mortgage payment?

### Outside of mortgage lending, in what other financial field is amortization used?

- Investment banking
- Business accounting
- Antique appraisal

### The first mortgages in America were introduced in what decade?

### Before the Federal Housing Authority introduced the 30-year fixed mortgage, what percentage of American families were homeowners?

- 20 percent
- 40 percent
- 80 percent

### If you have these three pieces of information about a mortgage loan, you can calculate the amortization table:

- Loan amount, annual interest rate and term of the loan
- Year of the loan, annual interest rate and size of the house in square feet
- Location of the house, loan amount and annual interest rate

### Which of the following mortgage loans is considered "self-amortizing?"

- 30-year fixed mortgage
- 30-year adjustable rate mortgage
- 5-year adjustable rate mortgage

### How many identical monthly mortgage payments will you make over the life of a 30-year fixed mortgage?

### An amortization table shows what two importance pieces of information about each monthly mortgage payment?

- When the payment is due and when it is considered late
- The amount of the payment and how much it will increase the next month
- How much of the payment is principal and how much is interest

### On a typical 30-year fixed loan, during what year of the amortization table does the borrower start paying back more principal than interest?

### What is the total interest paid over 30 years on a $150,000 mortgage loan with an annual interest rate of five percent?

- $85,783.34
- $139,883.68
- $211,673.90

### Depreciation and amortization are both generally accepted accounting principles of what accounting method?

- Accrual accounting
- Cash accounting
- Debit accounting

### Which of the following statements most accurately describes accrual accounting?

- A popular method of accounting for very small businesses.
- A method of accounting in which income and expenses are reported when sales or purchases are made, not when the cash actually changes hands.
- Technically illegal, it's a method of accounting used by only the most "creative" organizations.

### Which of the following business expenses would NOT be covered by depreciation?

- Trademarks
- Office equipment
- Delivery vans

### The legal life of a patent is how many years?

- 7 years
- 17 years
- 27 years

### Which of the following business expenses CANNOT be amortized for tax purposes?

- Copyrights
- Brand names
- Life insurance

### Which of the following items is NOT typically included on a company's annual balance sheet?

- Assets
- Liabilities
- Investments

### What is the accounting term for a business expense that is higher than the fair market value of the asset?

- Overcost
- Goodwill
- Badvestment

### The "amortization of intangibles" is covered in what section of the U.S. tax code?

- Section 197
- Section 13,457
- Trick question; there is no such section