A Characteristic of Consumer Loans Is That They

question 93

Multiple Choice

A characteristic of consumer loans is that they

• A)include a negotiated contract.
• B)are arrived at through a formal process.
• C)include a repayment schedule.
• D)are used to purchase big-ticket durable goods and other items.
• E)are all of these.

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Definitions:

Depreciation

The method of distributing the expense of a physical asset through its lifespan, accounting for depreciation, outdatedness, or aging.

Allocation Process

The method of distributing costs among different departments, products, or services for accounting purposes.

Expense Recognition Principle

An accounting principle that expenses are recognized and recorded when they are incurred, regardless of when cash payments are made.

Expenses

Costs incurred in the operation of a business to earn revenue, including operating and non-operating expenses.