When a Bank Grants a Line of Credit,a "Commitment Fee

question 41

True/False

When a bank grants a line of credit,a "commitment fee" is assessed at the start of the loan.

---

Definitions:

Payable

Short-term financial obligations or debts of a company, typically to suppliers, that are due to be paid within one year.

Cash Dividend

A payment made by a company out of its profits to shareholders, usually in the form of cash.

Dividends Payable

A liability on a company's balance sheet representing the amount of declared dividends that are owed to shareholders but not yet paid.

Retained Earnings

The portion of net income that is retained by the corporation rather than distributed to its owners as dividends.