Where will we record when there is a decrease in liability? O a. Debit side O b. Credit side c. None of the options O d. Neutral

Q: Which of the following increases the reported receivables in the financial statements? offsetting a…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What does default mean? Does it occur only when borrowers fail to make scheduled loan payments?

A: Default is the risk involved in providing the mortgage loan. Default indicates the incapability of…

Q: Which of the following have high return and low Liquidity? a. demand deposit account b. saving…

A: Account is referred as the record or an arrangement through which a customer’s financial assets are…

Q: How do the percent-of-receivables and aging-of-receivables methods compute bad debts expense?

A: In percent of receivables, bad debt expenses are computed as a percentage of total receivables…

Q: creditor mostly interested in а. Liquidity b. Efficiency С. Marketability d. Financial leverage

A: Creditors are the users of financial statement who analyses the company financial statement to…

Q: Some of the more common warning signals of financial distress include negative information about;…

A: Warning Signals: Warnings signals are the indicators which tells  that company can go into financial…

Q: Components of the cost of risk do not include: A-- the cost of issuing bonds B-- the cost of loss…

A: We will explore the components of the cost of risk and identify which option is not included in…

Q: To increase Prepaid Insurance a credit entry is needed. Select one: O True False

A: Assets are the resources owned by company. It has debit balance. Example:- Cash, accounts…

Q: What are Contingent Liabilities?  Give an example.  What are the factors that determine the reason…

A: A liability, the occurrence of which is uncertain that is it may or may not occur is known as a…

Q: 18. If you are credit True False O

A: Credit rating is very important to know that if you are eligible for the loans and credit. The…

Q: In your own opinion, what would be the out come or consequences if a debtor failed to settle thier…

A: A debt default occurs when the borrower is unable to pay the money back to the lender at the time…

Q: Some liability and net worth items increase spontaneously with increases insales. Put a check (✓) by…

A: Accounts payable is the amount owed by a company to its creditors for the goods and services…

Q: The cost of marginal bad debts is found by taking the difference between the levels of bad debts…

A: Bad debt refers to the loans or amount that can no longer be recovered as the person has lost all…

Q: Which of the following is false about the discount on short-term notes payable? * O The Discount on…

A: Notes payable is a written contract which specified a certain payment at a specified data along with…

Q: Debt will always have a cost basis. that is less than equity. OA. True OB. False

A: Debt - Debt is referred to as the amount of money that is borrowed by one party from another and is…

Q: Duration measures... Neither interest rate risk nor reinvestment risk. reinvestment risk. Both…

A: Duration can be intuitively defined for fixed-coupon bonds as the average maturity of all bond…

Q: Overdraft checks are insufficiently funded. True False There is a guarantee of higher interest…

A: Following is the correct answer

Q: All are items that can minimise credit risk, except. Guarantor  Mortagage Collateral  Pledge

A: The chance of a loss stemming from a borrower's failure to repay a loan or satisfy contractual…

Q: What is the role of Insurance company?

A: Answer no 3. Insurance companies are a part of financial system and considered as a safeguard the…

Q: What is cumulative effect of changing the estimated bad debit rate

A: In accounts Bad Debt Rate or Bad Debt Ratio explains that how many debtors are likely to not pay the…

Q: What are the potential risks of not properly accounting for discounts in the financial statements,…

A: Accounting for discounts in financial statements involves properly recording and reporting discounts…

Q: 4. How can interest earned or paid on short-termsecurities or loans be incorporated in the…

A: Introduction: Interest earned is nothing but an amount earned by a firm on bank accounts or other…

Q: VAR models are used banks to assess lenders exposure to default by its bc customers Select one: O…

A: Answer : True

Q: Liquidity

A: A firm’s liquidity position plays a very important role in ensuring its survival in the market.

Q: Explain Default Insurance?

A: Insurance is defined as a type of protection is a lawful understanding between two parties for…

Q: Need Help

A: Question: 71Write-Off Method:When a business makes a sale on account, that may not translate to…

Q: An alternative name for Bad Debt Expense is Select one: O A. Office Expense. OB. Interest Expense.…

A: The entity makes sales on account as well as sales on cash. The company makes sales on account to…

Q: The risk of not having sufficient cash and borrowing capacity to meet deposit withdrawals, loan…

A: Interest rate risk refers to risk of change in value of investments due to change in interest rates…

Q: Credit risk is defined as the inability of _________to meet their debt obligations. For _______the…

A: risk management is a task that requires a huge amount of skill and development. for risk management,…

Q: Which of the following arguments about time line is right? Group of answer choices a)Time line can…

A: The compatibility between the time units and the related interest rate per unit of time is shown…

Q: Which of the following is not an insurance management tool? Group of answer choices deductibles.…

A: Insurance management: Insurance Management is the administration of all insurance requirements, both…

Q: IDENTIFICATION: What area of insurance companies is faced with the risk that estimates of loss…

A: Insurance risk management is referred as an assessment as well as quantification of the financial…

Q: Define bad debt expense.

A: Definition:   Expenses: Expenses are costs incurred for the operations of a business. The costs…

Q: How does high interest rate and setting ceiling on loans (limited credit) compensate for the…

A: Rate of interest is selected as per the credit-score of the borrower compared to the range set by…

Q: What types of accounts compromise Income? and make up Net

A: Sales are subtracted from the cost of products sold, selling, overall and administrative…

Q: Which of the following is the main objective of P2P insurance   O a. Less Fraudulent Claims   O…

A: The acronym P2P insurance stands for peer to peer insurance. It is formed by a group of people who…

Q: An increase in Accrued Liability is ___________.  options: A decrease in PP&E. A use of cash. A…

A: Cash Flow Statement -A cash flow statement is a financial statement that shows an increase or…

Q: Moral hazard caused by Deposit Insurance Schemes refers to: Question 2Answer a. The placing of…

A: The objective of the question is to understand the concept of 'Moral Hazard' in the context of…

Q: As the discount rate increases A. present value factors decrease B. Present value factors remain…

A: Solution: As the discount rate increases "present value factors decrease".

Q: Modes of extinguishing obligations when creditor abandons his right to collect.

A: You have asked four different multiple choice question and as our guidelines are concerned we…

Q: A discounted note receivable is an example of a loss contingency? Is it true or false

A: This is a False.

Q: Risk designates any uncertainty that might trigger losses. These risks include all except:

A: Risk in finance refers to the vulnerability with regard to speculation that may have an adverse…

Q: A debt amortization schedule prepared for each debt and equity is considered a good control. O True…

A: Debt Amortization Schedule: A loan amortisation schedule is a comprehensive table of periodic loan…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.