Which of the following statements is false?   A.   Asset-backed securities (ABS) may be backed by financial assets other than mortgages.   B.   Residential mortgage-backed securities (RMBS) are backed by mortgages on income producing real estate properties.   C.   The securitization of financial assets increases the liquidity of the underlying financial assets.   D.   In a sequential-pay collateralized mortgage obligations (CMOs), all scheduled principal payments and prepayments are paid to each tranche in sequence until that tranche is paid off.

46. Help me selecting the right answer. Thank you

Which of the following is an example of faithful representation?   A  Showing lease payments as a rental expense B  Being prudent by recording the entire amount of a convertible loan as a liability C  Creating a provision for staff relocation costs as part of a planned restructuring D  Recording a sale and repurchase transaction with a bank as a loan rather than a sale

Identify each statement as true or false. If false, indicate how to correct the statement.     (And you have forgotten to answer the right ans of false in the previous question)

Which of the following security instruments, if any, does not allow the debtor the right of redemption upon default? a. Mortgage foreclosure by "action and sale" b. "Strict foreclosure" of mortgage c. Debtors have a right to redeem property under all of these security instruments. d. Deed of trust e. Mortgage foreclosure by "power of sale"

Which of the following statements about "avoidable interest" is false? it is computed only on self-constructed assets. it is computed using a weighted-average interest rate on debt and equity financing. it increases assets on the balance sheet. O it is an approximation of the interest expense the firm would have incurred if it financed all construction through debt.

(i). Debt investments not plan to sell reported at    a. amortized cost. b. fair value. c. the lower of amortized cost of fair value. d. net realizable value.     (ii). which of the following caa be reported at fair value?   a. Debt investments. b. Equity investments. c. Both debt and equity investments: d None of these answers' choices are correct.

ll of the following are differences between IFRS and GAAP in accounting for liabilities except: a.    When a bond is issued at a discount, GAAP records the discount in a separate contra liability account. IFRS records the bond net of the discount. b.    Under IFRS, bond issuance costs reduce the carrying value of the debt. Under GAAP, these costs are recorded as an asset and amortized to expense over the terms of the bond. c.    GAAP, but not IFRS, uses the term “troubled-debt restructurings.” d.    GAAP, but not IFRS, uses the term “provisions” for contingent liabilities which are accrued

Please solve this practice problem.

Are the over-collateralizationa requirements for mortgage pay-through bonds the same as for mortgage-backed bonds?