effect to asset, liability and owner's equity if the company repays the bank loan

Q: Bank Intermediation Ratio also used to assess its liquidity*     Capital to Loans Ratio Deposits to…

A: Liquidity in banking is the ability of a bank to meet short-term business and financial obligations…

Q: Is it in the best interests of the company to borrow money?

A: Introduction: Obtaining finances in debt is significantly more straightforward for companies than…

Q: An investment made in a fixed asset is similar to an investment made by a bank when it lends money.…

A: It is a long-term segment of a asset or property that an organization has and uses in the generation…

Q: Transactions involving the purchase and sale of long-term assets, investing in equity securities,…

A: Business functions are a combination of various activities.

Q: Match the type of bank income (revenue) with the associated source. Revenue received from wealth…

A: Interest Income: It is the main source of Income for banks and financial institution, interest…

Q: creditors assess risk when lending funds

A: Assessment of risks when lending funds means evaluating the credit worthiness of the company in…

Q: a. Securitization b. liquidation c. notarization  d.   intermediation) is an example of bank…

A: Option a is the correct answer

Q: From a bank's viewpoint, a customer's account in the bank is considered a: a.donation. b.liability.…

A: Bank statement: This is a periodic or monthly statement issued by bank reporting the account summary…

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: Why are bankers interested in the income statement of a business to which they loan money?

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: On a company's financial statements, do you have to list/note if an asset is being used as…

A: Disclosures are additional information which are meaningful and important for the stakeholders to…

Q: Why is it necessary for the bank to have the right to assign a mortgage to a third party (for…

A: Assignment of mortgage to a third party :  It is referred to as an agreement in loan obligations are…

Q: Using the categories of liquidity, profitability and operations management describe which ratios…

A: Solution Ratios analysis is used to determine the information regarding organisation's…

Q: 1.Describe how the time value of money impacts the terms of a business loan.

A: One of the important decisions which the financial manager has to take is to consider the concept of…

Q: Why is it advantageous for a company to finance its receivables?

A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…

Q: All the following are assets for commericial banks exept: A) loans B)cash C)Deposits…

A: A commercial bank is a type of financial organisation that handles all activities linked to…

Q: In which transaction deposit directly in the business current bank account as capital contribution

A: The transactions of the company will be analyzed by the management, and it will be recorded in…

Q: In the case of a bank's accrued interest ?revenues, which occurs first Earning The Interest Revenues…

A: Accrued Interest Revenue implies the interest revenue that has been earned but not yet received. It…

Q: How do firms use current liabilities, including accounts payable, accruals, lines of credit,…

A: Current liabilities are those liabilities which have a maturity period of one year or less than one…

Q: .Which of the following transactions affects the total value of liabilities of a firm? Goods…

A: Solution: Transaction that affect total value of liabilities of a firm, is the transaction that…

Q: Which of the following is a long term financial instrument? a. Certificate of deposit. O b.…

A: Funds based on period are: Short term funds Long term funds.

Q: deposit function, the bank is the _____ and the depositors are the ______ a. drawee - payees b.…

A: Banks do many function for customers and the one of the main function is the deposits made by the…

Q: Cash and balances with the C

A: Cashand cash due from Central Bank; cash on deposit in postal banking accounts; Due from Banks;…

Q: The _____ ratio gives actual losses on loans, while the ______ ratio gives the extent to which the…

A: Bank provide loans to borrowers but given are risk to banks So loans may occur loss to banks.

Q: When a company borrows money from a bank or sells bonds, it is called

A: When a business organization raises capital through the procurement of loans or by issuing bonds, it…

Q: Which of the following are the ways that a company can finance the purchase of assets?   Equity…

A: the correct option with proper explanation are as follows

Q: Which among the following is not a liquid asset Bills receivable Stock Cash deposited in a bank…

A: The assets can be classified as fixed assets, current assets, and liquid assets.

Q: Which of the following increase when business takes a loan from a bank? O a. Sales O b. Equity O c.…

A: The balance sheet of business consists of assets and liabilities.

Q: borrower’s personal investment in the operations of a business

A: The correct answer is b. Capital.

Q: Explain the relationship between a payor bank and its customers.

A: Introduction: Payor bank can be defined as a bank which is the drawee of a draft.

Q: Which of the following liabilities is created when a company receives cash for services to be…

A: According to the accrual concept, the revenue should be recognized when the service is provided…

Q: What occurs when a business pledges its receivables?

A:

Q: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: "Describe what a line of credit involves, and explain the legal obligation of a bank to provide…

A: Line of credit is the understanding between the banks and its customers that defines the maximum…

Q: An investment made in a fixed asset is similar to an investment made by a bank when it lends money.…

A: Fixed asset: Fixed asset is a long-period section of an asset or property that an entity has and…

Q: What occurs when a business factors its receivables?

A: