Examlex
Which of the following is the is a source of prepayment risk on a typical FNMA mortgage-backed pass-through security?
Accruals
Accounting adjustments for revenues earned or expenses incurred which have not yet been received or paid, respectively.
Adjusting Entries
Journal entries made at the end of an accounting period to update account balances to their correct amounts.
Normal Balance
The side (debit or credit) of an account that is normally expected to have a higher balance, indicating its increase.
Financial Statement
A document detailing quantitatively the financial state of a business, covering its balance sheet, income statement, and cash flow statement.
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