ne loans which are to be repaid within a short O a. Fixed liabilities b. Long-term liabilities C. Contingent liabilities
Q: equired How much is the total current liabilities and non-current liabilities?
A: The current liabilities are due and payable within one year and non- current liabilities are due and…
Q: on-current Liabilities
A: The non current liabilities as,
Q: To which element does the following definition correspond: It is a format where interest and…
A: Loan A loan refers to the amount which is borrowed from a financial or a non-financial institution.…
Q: A mortgage is a O short-term amortized loan that is secured by financial assets. O long-term…
A: A mortgage loan is a secured loan in which you borrow money by pledging your property as collateral…
Q: which of the followings is considered as long term liability :Select one .a mortgage payable .b…
A: a. mortgage payable is the right answer. Other option are incorrect as they are short term…
Q: The payment for the use of borrowed money is called: loan maturity value interest principal
A: Borrowed money is the loan taken, which is to be repaid within the terms of the loan contract.
Q: Examples of Current liabilities includes accounts payable, accruals and other short-term liabilities…
A: Current Liabilities are the liabilities (payments) that the company has to pay within a year. These…
Q: method of paying a loan (principal and interest) on installament basis, usually of equal amounts at…
A: Requirement of question ÷ Method of paying loan on installment basis, usually of equal amount at…
Q: Which of the following would be considered a long-term liability? a. interest payable b.…
A: Analysis of options a. interest payable Since interest will be paid within 12 months or normal cycle…
Q: Liabilities are generally classified on a statement of financial position as a. present liabilities…
A: Liability means the amount which is to be paid to an outsider by business. It is the present…
Q: The time value concept/calculation used in amortizing a loan is
A: Time value of money (TVM) means that the amount of money received in the present period will have…
Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…
A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…
Q: Interest expense
A: Interest expense paid on a loan which has prescribed is deductible from gross income of the payor…
Q: The amortization of premium on notes receivable is a. deduction from accrued interest receivable b.…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
Q: Which of the following is generally associated with payables classified as A/P? (A) Periodic…
A: Accounts payable means amounts repayable in respect of purchases made from suppliers.
Q: Typically, the estimated amount available for short-term payments in a statement of affairs…
A: Statement of accounts: It is the periodic statements summarizing all the account activity of the…
Q: Which of the following accounts is an liability? a. Bank deposit b. Prepaid insurance expense c.…
A: Current liabilities: Liabilities which have to be paid within one year from the date of the balance…
Q: Potential liabilities that depend on future events arising out of past events are calleda.…
A: Current liabilities: Current liabilities are the liabilities that are payable within a period of…
Q: Describe the obligations of long term liabilities.
A: Long-term liabilities: Long-term liabilities are obligations that the company needs to pay after at…
Q: Which of the following is a secured loan? A - All of these are secured loans B - accounts…
A: A secured loan is a loan that is secured against some collateral security; under this the lender can…
Q: Interest payable is shown on the Oincome statement as an operating exp Obalance sheet as a long-term…
A: Interest payable is a liability account, shown on a company's balance sheet, which represents the…
Q: Under a 75% LTV term loan structure, when is the balance of funds released by the lender to the…
A: Borrowing to purchase an asset: An asset can be purchased by taking a loan from a financial…
Q: Which of the following is an arrangement by which one party promises to pay a sum of money to…
A: Insurance is a contract between two parties where one party i,e policy holder pays a premium to…
Q: Define Accrued Interest Payable.
A:
Q: Define secured loans.
A: Secured Loans: Secured loans are those for which the borrower puts up some asset as security or…
Q: Describe When Short-Term Obligations of liabilities Are Expected to Be Refinanced.
A: Short-term obligations are the current liabilities of an enterprise that is required to be fulfilled…
Q: What is meant by a term-loan agreement?
A: A Loan Agreement, also known as a term loan, demand loan, or loan contract. It basically is a legal…
Q: How is interest expense determined in a finance lease transaction? How does the approach compare to…
A: Lease: Lease refers to a contractual agreement whereby the right to use an asset for a particular…
Q: A loan secured with a financial asset (eg. Accounts receivables) is a called a ___________ loan.…
A: Financial asset is a liquid asset which can be easily sold in the market. A financial asset can be…
Q: Obligation to pay back your monetary debt. What kind of obligation is involve here?
A: Obligation to pay the debt: In the context of financial responsibilities, this refers to any…
Q: gent liab
A: Contingent Liability A contingent liability is an obligation that may arise as a result of the…
Q: Define liabilities and distinguish between current and long-term liabilities.
A: A liability is something a person or company owes, usually a sum of money. Liabilities are settled…
Q: RUE OR FALSE? The effect of a lender agreeing to give the borrowing entity a grace period after the…
A: Current liabilities: Current liabilities are the obligations that are to be met within a year or 12…
Q: total assets. State the effect the following event occurring on the reporting date would have on…
A: Solution: Interest payment will reduce the Cash (an asset) because of which Average total Assets…
Q: Current liabilities are usually recorded and reported in financial statements at their ful maturity…
A: Financial statements: Financial statements are the final reports of a company, prepared at the end…
Q: in.......................all of the interest is paid at end of the term
A: Interest payment refers to the amount that a borrower pays on the loan amount acquired by him for an…
Q: Explain the difference between debt to income (DTI) ratio and loan to value ratio (LTV). In…
A: The question is based on the explanation of Lending ratios, Debt to income (DTI) ratio and loan to…
Q: interest expense, which of the following * ?occurs firs Incurring The Interest Expense C Paying The…
A: Accrued interest expense implies interest expense that has been incurred but not yet paid. It is a…
Q: Why A debt security pays a fixed stream of income or a stream of income that is determined according…
A: Debt instruments It is the fixed-income securities that generally make payment of fixed interest…
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- The repayment of a loan in a series of equal periodic payments is called _____________. a. Amortization b. Mortgage c. Down payment d. Installment loanAn important application of -Select- loans. Each loan payment consists of interest and repayment of principal. This breakdown is often developed in an amortization schedule. Interest is -Select- v in the first interest involves amortized loans. Some common types of amortized loans are automobile loans, home mortgage loans, and business period and -Select- over the life of the loan, while the principal repayment is | -Select- v in the first period and it | -Select- thereafter. Quantitative Problem: You need $11,000 to purchase a used car. Your wealthy uncle is willing to lend you the money as an amortized loan. He would like you to make annual payments for 5 years, with the first payment to be made one year from today. He requires a 8% annual return. a. What will be your annual loan payments? Do not round intermediate calculations. Round your answer to the nearest cent. $ b. How much of your first payment will be applied to interest and to principal repayment? Do not round intermediate…When the total interest charged is linearly proportional to the initial amount of the loan, the interest rate and the number of interest periods, the interest is said to be a.) Effective b.) Continuous Compounding c.) Simple d.) Compounding
- Add-on Interest is a method of calculating the interest to be paid on a loan by combining the principal amount borrowed and the total interest due into a single figure, then multiplying that figure by the number of periods for repayment. Is it True or False?Identify the types of information that can readily be deter-mined from an amortization table for an installment loan. (More than one answer may be correct.)a. Interest expense on this liability for the current year. b. The present value of the future payments under chang-ing market conditions. c. The unpaid balance remaining after each payment.d. The portion of the unpaid balance that is a currentliability.In the amortization of loans, interest must be paid at the beginning of each period calculated on the balance of the principal amount due (unpaid balance). TRUE OR FALSE?
- c) compounding period and total time of a loan or investmentLoans and receivable should be measured subsequent to initial recognition at * a. Amortized cost using the straight line method b. Fair value c. Fair value plus transaction cost d. Amortized cost using the effective interest methodExplain the term Loan Repayment Schedule?
- Which of the following is subject to change over the life of an adjustable-rate mortgage loan? a.Initial rate b.Margin c.Note rate d.Annual and life of loan capsAnnuity due calculations are common when dealing with _____. a. rental contracts b. cash dividends c. loan repayments d. interest paymentsWhich of the following is true when the mortgage loan is an amortizing loan? a. At the beginning of the term of the loan the largest part of the payment is a paydown of principal, but a payments progress a rising portion is applied to interest payments. b. Interest payments and paydown of principal remain constant during the loan. c. At the beginning of the term of the loan the largest part of the payment is interest, but a payments progress a rising portion is applied to the paydown of principal. d. Paydown of principal occurs at the end of the loan. e. None of the above.