If a Lender Is to Repossess or Bring About the Sale

question 13

Multiple Choice

If a lender is to repossess or bring about the sale of a property if the borrower defaults on the mortgage loan,the lender is said to have a ________ in the real estate.

• A)Freehold interest
• B)Lease interest
• C)Secured interest
• D)Quitclaim

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Definitions:

Closing Entries

At the close of an accounting period, records are made to move balances from interim accounts to enduring accounts.

Accounting Cycle

The sequence of steps followed in the accounting process to track and report financial transactions, from the initial transaction to the financial statements.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically including a balance sheet, income statement, and cash flow statement.

Post-Closing Trial Balance

A list of all accounts and their balances after closing entries are made, serving to verify the equality of debits and credits.