Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?
A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…
Q: Describe the repayment process for both a term loan and ab
A: Term loan and bonds are two different types of raising money.
Q: What are the common requisites of contract of pledge and mortgage?
A: pledge a serious promise or agreement to do or not do something: a pledge of assistance; a vow not…
Q: are, in essence, an insurance contract against the default of one or more borrowers.
A: A credit default swap (CDS) is a financial derivative or contract that allows an investor to "swap"…
Q: Who are the parties to the contract of pledge and contract of mortgage?
A: Pledge is a formal promise or agreement while Mortgage is a type of loan that's used to finance…
Q: Describe the Repayment Plans Offered by the Lender?
A: Answer: A repayment plan is a method of repaying a debt over an extended period of time, usually by…
Q: Consider the mortgage term PITI. What do the last two letters stand for? title insurance taxable…
A: Many mortgage lenders estimate PITI for the insured person before they decide whether he qualifies…
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: For a creditor; how is a loan impairment recorded?
A: Creditors: They are the outside entities to whom the business owes money for any product or a…
Q: How can we determine a Loan's Balance, Principal, and Interest?
A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…
Q: Describe the fundamental requirements of a valid deed and distinguish among warranty, special…
A: Valid Deed: A deed is a written document that shows that the title of ownership has been transferred…
Q: A bond is a certificate of indebtedness that sp the obligations of the borrowers to the lender.…
A: Bond is a debt insturment
Q: An installment note is a liability requiring a series of payments to the lender. True or False True…
A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…
Q: The discount allowed to a debtor for early payment is
A: Debtors :- Debtors are the person to whom goods and services are sold on credit.
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: For what items may a lender require escrow accounts from a borrower?
A: Escrow account is the third party account in which securities or assets are kept until the…
Q: A deposit premium can be defined as The initial payment schedule required to institute a premium…
A: An insurance contract is a contract where the insured pays the insurer premiums for coverage…
Q: The document a lender gives a borrower detailing the actual costs of a loan is called a…
A: A truth in lending disclosure is an agreement where there are some important disclosure made by the…
Q: Distinguish between an interest-bearing note and a non-interest-bearing note. How are the proceeds…
A: A commercial paper that contains an express and absolute promise by the maker to…
Q: describe the role of debt covenants in protecting creditors;
A: Debt covenants are restrictions that lenders (creditors, debt holders, investors) put on lending…
Q: A(n) _________ is a lender, seller, or any other person in whose favor there is a security interest.…
A: Following are the definitions: Unsecured Creditor: A creditor not having the benefit of security…
Q: A(n) is where the debtor delivers personal property to the creditor to secure the debt. (one word)
A: bailment represent a legal relationship where physical position of the person property transferred…
Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.
A: Solution- Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…
Q: What are three components used by a lender in determining the interestrate charged for a loan?
A: The three components used by a lender in determining the interest rate charged for a loan are as…
Q: When would the cost of credit life insurance be included in the finance charge and APR calculations…
A: Introduction: The cost of a credit insurance premium depends on different aspects such as the size…
Q: Which are the Some covenants that may be included in the mortgage document?
A: Covenants is a contract specifying the rules and regulations between the borrower and sender.…
Q: How should a debt callable by the creditor be reported inthe debtor’s financial statements?
A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…
Q: An escrow agreement and a mortgage A promissory note and a mortgage or deed of trust A promissory…
A: When any property is mortgaged as collateral for financing than it is necessary to make certain…
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: why loan officer prefer accrual basis accounting
A: The financial statement of a firm can be prepared based on accrual basis of accounting or cash basis…
Q: What is interest earned by a lender but not yet collected? As well as what is interest earned by a…
A: Lender is the person who lends or provides money to other person in return of some interest as well…
Q: What are current and noncurrent accounts among the following: - Deposit Liabilities - Bills…
A: Current liabilities are those Liabilities which are to be repaid within one year.. Any Liabilities…
Q: Describe the concept of non interest bearing on loan.
A: A non-interest bearing loan is a debt for which there is no documented requirement for the borrower…
Q: Which of the following is classified as nonmonetary? a. Warranty liability b. Accrued expense c.…
A: The question is multiple choice question Required Choose the Correct Option.
Q: Which are the subjects that should always be included in a printed form of mortgage instrument is…
A: Parties name, conditions for repayment, clause for the mortgage, condition of an insurer, mortgagors…
Q: Which of the following shows the timeline of the loan from the lender's perspective?
A: A lender is the one who lends to the other party. In return, the lender receives the sum with an…
Q: a loan, secured by a collateral, that the borrower is obliged to pay at specific terms. O Loan…
A: A loan is referred as the funds through which one or more company, individual, or some other entity…
Q: What does the disclosure note for debt includes?
A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…
Q: Why are the credit default swaps, in essence, an insurance contract against the default of one or…
A: Credit default swaps are derivatives contract between two investors in which investors who has lend…
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- Obligation to pay back your monetary debt. What kind of obligation is involve here?Explain the rights of a creditor against a surety and the rights of a surety, including those of a cosurety.C. renewal notice O D. completing notes 19. is the document that acknowledge the insured legally entitled to receive the payment from the policy. * O A. Discharge notes B. Completion notes O C. Claim form O D. Policy form 20. The written insurance document that may include all clauses, exception and
- Which of the following is not an accrued liability? Question 36 options: A) Warranty liability. B) Accounts payable. C) Interest payable. D) Salaries payable.Exercise Content Please provide a brief answer to each of the following questions: 1. What is the warranty of merchantability? 2. What is the warranty of fitness for a particular purpose? 3. What is a disclaimer? 4. What are the different ways in which personal property can be obtained? 5. What is abandonment? 6. What is a bailment?A contractual agreement in which the borrower receives something of value now and agrees to pay the lender in the future with an interest is called as. a. Credit b. Insurance c. Money d. Time
- The consideration paid by insured in a contract of insurance. A. premium C. prepaid insurance B. insurance expense D. either B or CAn insurance refers to a signed agreement between the insured and the insurer. O a. Certificate O b. Premium O c. Security O d. PolicyWhat accounts are used to record a contingent warranty liability that is probable and estimable buthas yet to be fulfilled?A. warranty liability and cashB. warranty expense and cashC. warranty liability and warranty expense, cashD. warranty expense and warranty liability
- Chapter 10, Question 16: What are contingent liabilities? List three examples of contingent liabilities. When should contingent li-abilities be recorded in the accounts?_____ is a contract that involves compensation for specific potential future losses in exchange for periodic payments and that provides for the transfer of the risk of a loss, from one entity to another, in exchange for a premium. a.Spot contract b.Insurance c.Hedging d. Forward contractDistinguish between a current liability, such as accounts payable, and a provision.
