Which of the Following Usually Comes Under the Heading of Abusive

question 51

Multiple Choice

Which of the following usually comes under the heading of abusive lending?

• A) Abusive lending usually is defined by a variety of lending practices
• B) It is the excessive and hidden fees in the amount financed
• C) A fundamental characteristic is aggressive marketing of credit to prospective borrowers who cannot repay it on the terms offered
• D) Typically, such loans are underwritten on the liquidation value of the collateral rather than the creditworthiness of the borrower

---

Definitions:

LIFO

An inventory valuation method that assumes the last items placed into inventory are the first ones sold; stands for Last In, First Out.

Cost

A payment of cash (or a commitment to pay cash in the future) for the purpose of generating revenues.

Ending merchandise inventory

The final value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Inventory costing method

An accounting methodology used to value inventory and determine the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out).