In Analyzing a Mortgage Loan Application, It Is Illegal for a Lender

question 32

True/False

In analyzing a mortgage loan application, it is illegal for a lender to consider marital status.

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Definitions:

Working Capital

The difference between a company's current assets and current liabilities, indicating the liquidity and operational efficiency of the business.

Financial Data

Information related to the financial performance of a business, including income, expenses, assets, liabilities, and equity, used for analysis and decision-making.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales, calculated by dividing net credit sales by the average accounts receivable.

Sales On Account

Transactions where goods or services are sold with the understanding that payment will be made at a later date, typically recorded as accounts receivable.