Which of the Following Is Not a Type of Consumer

question 6

Multiple Choice

Which of the following is not a type of consumer loan?

• A) A student loan.
• B) Credit card purchases for household items.
• C) A mortgage used to purchase an owner-occupied house.
• D) A loan taken out by a young entrepreneur to finance the purchase of a lawnmower for a summer landscaping business.

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Definitions:

Straight-Line Method

The straight-line method is a way of calculating depreciation by evenly spreading the cost of an asset over its useful life.

R&D Costs

Expenditures related to the research and development of company’s products or services.

Impairment Losses

Financial losses recognized when the carrying amount of an asset exceeds its recoverable amount.

GAAP

Generally Accepted Accounting Principles, a standard framework of guidelines for financial accounting used in any given jurisdiction, notably the U.S.