You Could Use ________ Analysis to Determine Whether or Not

question 31

Short Answer

You could use ________ analysis to determine whether or not you could afford the payment for a specific mortgage amount,interest rate,and terms.

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Definitions:

Adjustments

Entries made in accounting records to correct errors or allocate revenues and expenses to the appropriate accounting period.

Depreciation

The procedure of distributing the cost of a solid asset over the time it is considered useful.

Accrual Basis

A system in bookkeeping where earnings and expenses are documented at the point of transaction, not necessarily when cash exchanges hands.

Cash Basis

An accounting method that recognizes revenues and expenses only when cash is received or paid, as opposed to the accrual basis accounting.