A Contingent Item That May Eventually Be Placed on the Right-Hand

question 41

Multiple Choice

A contingent item that may eventually be placed on the right-hand side of the balance sheet or expensed on the income statement is a(n)

• A)loan commitment.
• B)off-balance-sheet liability.
• C)off-balance-sheet asset.
• D)net charge-off.
• E)loan sold without recourse.

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Definitions:

Mill Rate

A tax rate applied to property value, with one mill representing one-tenth of a cent ($0.001).

Revenues

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Fraction

A mathematical formula that signifies dividing one value by another.

Decimal Places

Decimal places refer to the digits that appear after the decimal point in a numerical value, representing fractions of a whole.