ICE - Ch 13-2 - 240125

Answer the following using the FASB codification

A contingent liability: Is always of a specific amount O Is a potential obligation that depends on a future event arising out of a past transaction or event O Is an obligation not requiring future payment O Is an obligation arising from the purchase of goods or services on credit O Is an obligation arising from a future event

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

Question 1 Rules of the internal revenue service concerning the deductibility of points on a mortgage DO NOT include,   A for a buyer to deduct points the seller paid to reduce his cost basis B Points paid to refinance the property to be fully deductible in the year paid C points paid by the seller to be considered a selling expense D points to be deductible as interest to be paid directly to a lender question 2 which of the folloeing would actually be included in an annual property operating statement of a potential real estate investment A economic base analysis B managment fee C comparative market analysis D investor`s earning potential

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3- The legal process by which a lender attempts to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property is called: A. REO B. Foreclosure C. Abundance D. Cosmopolitan 4- When a lender takes ownership of a foreclosed property when it fails to sell at the amount sought to cover the loan, this is called: A. Real estate owned property B. Foreclosure C. End of tenancy D. Abundance

What does a warranty deed warrant? (multiple answers allowed, incorrect answers will reduce correct answers) O a. no encumbrances O b. that a title search has been done O c. that there is a life estate O d. quiet enjoyment of the property O e. that nobody owns any part of the property other than the owner O f. that the partition action is finalized O g. that title insurance has been purchased O h. title

6- Which one of the following is not an advantage of leasing fixed asset? a. Lessee has access to asset without the need to purchase the asset b. Lessor becomes the owner of the asset c. Repairs and maintenance are borne by the lessor d. Risk of loss due to obsolescence is on the lessee

q24 Which of the following is NOT a step in impairment testing? Select one: a. Calculate the asset’s carrying amount in the books of the entity b. Sell the asset after if the fair value is greater than the recoverable amount c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.

Which of the following factors cannot be used to determine an insurer's limit of liability on property coverage? O A. Actual cash value Replacement cost Salvage value Policy limits OB. O C. D. Whiteboard

_____ 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 contract

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The _______________ problem is when customers who are most likely to have a claim against an insurance company are those quickest to apply for an insurance contract.  Group of answer choices a. Capital adequacy b. Default risk c. Adverse selection d. Mismatched maturity

Answer to following multiple choice questions?  1. Leased asset status is Amana(Trust) in the hand of the lessee. Any damage to leased asset caused by lessee's negligence or mistake he will be responsible for this damage a. True b. False   2. Which of the following statements about diminishing Musharakah is correct? a. Rental payments remain constant while Unit sale price decreases b. Rental payments decrease while Unit Sale Price remains constant c. Both rental payments and Unit sale price decrease d. Rental payment decrease while unit sale price increase.   3. If A and B enter into a Musharakah contract and it is agreed between them that A will get 15% of his investment, this contract is valid. a. True b. False   4. Mr. Saeed sold his car for PKR 1.5 million which he had purchased for PKR 1.6 million. He mentioned the details about it to the counterparty including total costs (PKR 1.6 mn). This type of sale is known as Murabaha. a. True b. False     5. Which of…

Which one of the following is not an advantage of leasing fixed asset? a. Repairs and maintenance are borne by the lessor b. Risk of loss due to obsolescence is on the lessee c. Lessee has access to asset without the need to purchase the asset d. Lessor becomes the owner of the asset

Question 2 In a real estate short sale the balance owed on the mortgage falls short of the proceeds of the sale. True False

Q21 Which of the following is NOT a step in impairment testing? Select one: a. Sell the asset after if the fair value is greater than the recoverable amount b. Calculate the asset’s carrying amount in the books of the entity c. Calculate the recoverable amount of the asset d. Assess whether there are circumstances that may indicate that the asset should be impaired.

question 2 choose the correct answer from the choices

Q Which of the following examples represent a risk incidental to ownership of an underlying asset, which 5 may indicate a lease should be classified as an operating lease from a lessor's perspective. Select the one correct option and then select Submit. Costs of repairs and maintenance Cost of licensing Insurance costs Impairment as a result of damage to the asset

92. Which of the following is not a mode of extinguishment of contract of sale? Group of answer choices a. Redemption, whether legal redemption or conventional redemption b. Fulfilment of suspensive condition on sale of a determinate thing whose acquisition of ownership by the seller depends upon a contingency c. Resale of the goods by the unpaid seller d. Cancellation of sale of personal property in instalments by the seller in case the buyer defaulted in at least two instalments

Redeemable debentures can be described as__________ Select one: a. debenture secured by either movable or immovable assets. The debenture holder has the right to claim repayment from the proceeds of the sale of assets. b. debentures that are not secured by any asset. The debentures holders have the same rights as any other creditor on the case of liquidation. c. debenture holders have the option to convert their debenture into specific shares after a specified period. d. debentures may be redeemed prior to the maturing date.

Which of the following is NOT an asset? Freehold premises Loan to Mamu Bank overdraft Machinery

All option are Company B, Company A

Mortgage Interest is a common: Select one: O a. None of these O b. Exclusion from gross income Oc. Deduction from AGI O d. Itemized Deduction