When do you considered a loan, receivables are impaired?

Q: What does default mean? Does it occur only when borrowers fail to make scheduled loan payments?

A: Default is the risk involved in providing the mortgage loan. Default indicates the incapability of…

Q: Why is it essential to know different kinds of loans?

A: A loan helps in determining the money supply and helps new businesses in the lending process. The…

Q: the lending operation, how many types of loans security?

A: In lending operations banks for their safety of loans ask  for some collateral.You have to provide…

Q: Which is better to have? Accounts receivable or notes receivable? And why?

A: Accounts receivable are current assets which represent amounts to be collected from customers for…

Q: Which of the following is true of an unsecured loan? A. They are exclusively for cars, houses, and…

A: Loan can be defined as money that somebody lends other person in exchange of some interest that is…

Q: The cost of marginal bad debts is found by taking the difference between the levels of bad debts…

A: Bad debt refers to the loans or amount that can no longer be recovered as the person has lost all…

Q: What is the difference between a line of credit and a short-term loan?

A: Short term loan:   A loan is borrowed money that is to be paid back along with the interest. A…

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: what are two types of credit

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

Q: 3. Which one of the following could not be called income? A. An allowance B. A paycheck C. Interest…

A: An income is the amount of money or cash inflows that are received by an individual or a business in…

Q: Which of the following type of loan is best used for temporary shortfalls of income? a. Secured…

A: Loans can be short term loans or long term loans

Q: Vhich of the following is not a credit ev O loan refinancing O bankruptcy O default O debt downgrade

A: Credit default swaps are derivative contract that are done between the the parties and done to…

Q: QUESTIONS: 1. How much are the total free assets? 2 How much are the unsecured liabilities with…

A: The given question has more than 3 subparts so as per the policy of the company only the first 3…

Q: How does high interest rate and setting ceiling on loans (limited credit) compensate for the…

A: Rate of interest is selected as per the credit-score of the borrower compared to the range set by…

Q: 1. Loans typically come with restrictions on the borrower called which are intended to protect the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following has the highest relative likelihood of being defaulted in paying the…

A: The interest expense and earnings before interest and income taxes details for each of the company…

Q: When you borrow money to pay for goods and services, you are using what form of payment? Savings…

A: Payment means the transfer of money or goods and services in return or exchange of any product or…

Q: As long as you have a strong reason for taking a loan, there is no need to understand the terms of…

A: Understanding the terms in a loan agreement is vital. Loan agreements are an critical a part of…

Q: What is the process of calculating the remaining balance of different types of loans?

A: The remaining balance of a credit plan equation can be part of two sections, the future estimation…

Q: Why is interest paid on amounts borrowed from banks and other lenders considered to be anoperating…

A: Cash Flow Statement: Cash Flow Statement is a fundamental financial statement that renders valuable…

Q: Which of the following is a secured loan? A - All of these are secured loans B - accounts…

A: A secured loan is a loan that is secured against some collateral security; under this the lender can…

Q: If a transaction has the effect of decreasing an asset, is the decrease recorded as a debit or as a…

A: Generally, Assets have a Debit Balance If any account generally has a debit balance and if a…

Q: Allowance for Bad Debts is what kind of account?

A: There are two ways by which bad debt expense is reported by company which is direct method and…

Q: Why can’t bank lend without a written loan policy? Explain in detail.

A: Lending procedure: There are certain steps that are followed in the procedure. this includes the…

Q: Explain how an installment loan differs from revolving credit in terms of risk and the nature of the…

A: Installment credit is a type of loan in which the borrower receives a defined, or limited, sum of…

Q: What are the 5 Cs of credit that are sometimes used by bankers and others to determine whether a…

A: While granting credit banks do analysis of that loan amount will be repaid without any problem.

Q: Hi why is the net income on the credit side and not debit?

A: Net Income - Net Income is the result of the revenue over expense incurred by the company. It will…

Q: What does it mean when a lender accelerates on a note? What is meant by forbearance?

A: Promissory note is written by the borrower and sent to the lender. In promissory note, borrower…

Q: If a person charges interest on a loan transaction equivalent to the inflation rate than will it be…

A: Time value of the money is the value of the money which a person must use in order to know how much…

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: 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: en doubtful debt and bad debt?     5) How do I create an allowance for doubtful

A: 1. Both these words are related to the finance. When a client has purchased goods or taken a service…

Q: What are the stages and processes for resolving bad loans? note: include a reference

A: Bad Loans: When a loan made by a bank cannot be recovered, either partially or fully, it is termed a…

Q: How does getting a secured loan using accounts receivableas collateral differ from factoring?

A: In factoring, the corporation sells their receivable balance to the factoring corporation at a…

Q: True or false. Rate of return is the interest earned on the unpaid balance of an amportized loan

A: Rate of return is calculated to ascertain the profit and loss of an investment. It is expressed in…

Q: Diffrence between debit and credit ?

A: Debit and credit are two sides of general ledger account. For some accounts, debit means increase…

Q: What is meant by bad debts recovery? Give two illustrative example.

A: Bad debt refers to loans or outstanding balances owed that are no recoverable and must be written…

Q: The original amount of money in a loan transaction is known as what?

A: Introduction: A loan is nothing but an amount of money lent from one or more individuals or…

Q: 1. Subsequent to initial recognition, accounts receivable should be carried at a. Face Value c.…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Question 5: Collateral is a valuable asset that is pledged to ensure loan payments. If you fail to…

A: Collateral is an asset which is pledged by the borrower to the lender to give a security to the…

Q: One possible cost of extending credit is called​ ______________.

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.