Obj. 2, 3 Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy. As an internal auditor of Pacific Bank, how would you respond to this change in policy?

Obj. 2, 3 Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy. As an internal auditor of Pacific Bank, how would you respond to this change in policy?

Financial Accounting

15th Edition

ISBN:9781337272124

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter4: Completing The Accounting Cycle

Section: Chapter Questions

Problem 5CP

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Pacific Bank provides loans to businesses in the community through its Commercial Lending Department. Small loans (less than $100,000) may be approved by an individual loan officer, while larger loans (greater than $100,000) must be approved by a board of loan officers. Once a loan is approved, the funds are made available to the loan applicant under agreed-upon terms. Pacific Bank has instituted a policy whereby its president has the individual authority to approve loans up to $5,000,000. The president believes that this policy will allow flexibility to approve loans to valued clients much quicker than under the previous policy. As an internal auditor of Pacific Bank, how would you respond to this changein policy?
q7 Which of the following holds deposits, makes loans and provides other financial services to member-owned organizations? a. Mutual Funds b. Central Bank of Oman c. Commercial Banks d. Cooperative Banks q8 Financial market does have a location such as. a. Bank Muscat b. Knowledge oasis Oman c. Muscat grand mall d. Chamber of commerce
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Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2022, for Business Solutions follow. Total assets $120,268 Total liabilities $875 Total equity $119,393 The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.8. As of March 31, 2022, what is the maximum amount that Business Solutions could borrow from this bank? Assume Business Solutions borrows the maximum amount allowed from the bank. What percentage of assets would be financed by debt? What percentage of assets would be financed by equity?
1.10 N Minajo received an electronic funds transfer (EFT) of R4 500 from A Grand, a debtor, in full settlement of her account of R5 000. Both Minajo and Grand are not registered as VAT vendors. Which of the following is the correct option to record the receipt in the accounting records of N Minajo? A)Debit bank account (R5 000). credit debtors' control (R4 500), and credit settlement discount granted account (R500). B)Debit bank account (R4 500), credit debtors control (R5 000), and debit settlement discount received account (R500). C)Debit debtors' control (R5 000), credit bank account (R 4 500), and credit settlement discount received account (R500). D)Debit bank account (R4 500). credit debtors' control account (R5 000), and debit settlement discount granted account (R500).
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