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Which of the following is NOT a bound control?
Loan Covenant Violations
Occur when a borrower fails to meet one or more conditions of the loan agreement, potentially leading to penalties or the loan being called due.
Accounting Changes
Amendments in accounting principles, estimates, or the reporting entity that affect the financial statements of a company.
Reported Earnings
Reported earnings refer to the net income of a company as stated in its income statement, in compliance with the relevant accounting standards.
Seizure of Collateral
The act of a lender taking possession of the collateral pledged against a loan in the event of default by the borrower.
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