Lending Practices and Loans, Finance And Accounting

Question: How does a long term loan received in cash affect a firm's quick ratio?
A
It is not possible to say anything on the basis of the information given

B
There will be no change

C
It will decrease

D
It will increase

Note: Answer not sure
1. Report
Question: How does the payment of a short term loan affect a company's balance sheet?
A
It reduces cash and short term liabilities

B
It reduces cash and increases short term liabilities

C
It decreases short term liabilities and increases long term liabilities

D
It has no impact

Note: Answer not sure
1. Report
Question: What is an interest only loan?
A
A loan on which interest accrues only in the second year

B
A loan on which the borrower has to pay back only the interest and not the principal

C
A loan on which the borrower has to pay only the interest for a specified time period, not reducing the principal at all

D
A type of mortgage

Note: Answer not sure
1. Report
Question: What is the collateral under a mortgage loan?
A
The family automobile

B
The borrower's job

C
All the borrower's cash in the bank

D
The house which the mortgage is used to purchase

Note: Answer not sure
1. Report
Question: What does the term "Margin" mean?
A
The ratio of debt to equity

B
The claim a lender may place on property in return for making a loan

C
The amount the lender adds to the predetermined index rate of an Adjustable-Rate Loan to determine the new interest rate at each adjustment.

D
The borrowing of money

Note: Answer not sure
1. Report
Question: What is the definition of a loan?
A
A type of debt, the redistribution of assets between a borrower and a lender with a promise to repay

B
Something similar to an asset

C
Always a short term obligation to repay someone

D
The same as a draft or check

Note: Answer not sure
1. Report
Question: What is meant by the term "Assumption"?
A
Applying for a mortgage

B
A loan secured by the equity value in a borrower's home

C
The transfer of the seller's existing mortgage to the buyer

D
None of these

Note: Answer not sure
1. Report
Question: Why is interest earned on a loan considered taxable revenue?
A
Because it is revenue only if over $1,000

B
Because it was earned legally and therefore must be included in revenue

C
Because the SEC requires it

D
Because interest is profit generated by providing a loan and is income to the lender

Note: Answer not sure
1. Report
Question: When can interest paid be deducted on a tax return?
A
In the year the loan was taken out

B
In the year the final payment on the loan is made

C
It is not allowed to be deducted at all

D
In the year the interest is paid

Note: Answer not sure
1. Report
Question: What is the payment of the monthly installment by the borrower to the lender called?
A
Servicing

B
Liability

C
Financing

D
Bond payment

Note: Answer not sure
1. Report

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Question: How does a long term loan received in cash affect a firm's quick ratio?

Question: How does the payment of a short term loan affect a company's balance sheet?

Question: What is an interest only loan?

Question: What is the collateral under a mortgage loan?

Question: What does the term "Margin" mean?

Question: What is the definition of a loan?

Question: What is meant by the term "Assumption"?

Question: Why is interest earned on a loan considered taxable revenue?

Question: When can interest paid be deducted on a tax return?

Question: What is the payment of the monthly installment by the borrower to the lender called?