Bank Loans on Which Interest Is Paid Up Front in Advance

question 161

Multiple Choice

Bank loans on which interest is paid up front in advance are called:

• A) discount loans.
• B) build-up loans
• C) advance interest loans.
• D) revolving credit agreements.

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Definitions:

Sales Price

The amount of money for which a product or service is sold in the marketplace.

Significant Production

Significant production describes a level of manufacturing or output that markedly influences a company's overall capacity and inventory levels.

Revenue Recognition

The accounting rule that specifies the particular scenarios in which revenue is acknowledged or recorded.

Software Delivery

The process through which software is made available to and installed on the end user's computer or device.