Which of the Following Instances of Lending Is Most Likely

question 63

Multiple Choice

Which of the following instances of lending is most likely to be covered by the Truth in Lending Act (TILA) ?

• A)A savings and loan association extends a $30,000 credit to a retail consumer.
• B)An auto retailer extends a $25,000 credit to a buyer payable in five equal installments.
• C)An accountancy firm extends a $10,000 one-time credit to an employee.
• D)A bank extends a $20,000 credit to a farmer for use in agricultural purposes.

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Definitions:

Balance Sheet

A financial statement that provides a snapshot of a company's financial position, showing assets, liabilities, and shareholders' equity at a specific point in time.

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from its total revenue.

Cost of Goods Sold

Direct spending associated with producing the merchandise a company trades, including both materials and manpower costs.

Worksheet

A columnar device used by accountants to aid them in completing the accounting cycle—often just referred to as "spreadsheet." It is not a formal report.