Which of the Following Items Must You Provide When Applying

question 24

Multiple Choice

Which of the following items must you provide when applying for a loan in order to prove you have collateral to back your loan?

• A) Personal cash flow statement
• B) Paycheck stub
• C) Personal balance sheet
• D) A and C are correct

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Definitions:

Business Entity Assumption

A principle that requires a business to be accounted for separately from its owner or other businesses, ensuring that the company's financial statements reflect only its own operations and financial position.

Personal Automobile

A vehicle intended for private use by individuals rather than for commercial or industrial purposes.

Sole Owner

An individual who has full ownership and control over a business, bearing all the risks and benefits of the entity.

Accounting Equation

The fundamental principle of accounting that states assets equal liabilities plus owners' equity, serving as the foundation for double-entry bookkeeping.