A Single-Payment Loan Is Advantageous Only If

question 146

Multiple Choice

A single-payment loan is advantageous only if

• A) the interest rate is less than on an installment loan.
• B) funds will be available to repay the lump sum.
• C) figured with discount method.
• D) figured with simple interest method.
• E) it is unsecured.

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Definitions:

Collection

An effort to accumulate amounts due from debtors, or the process of recovering financial obligations.

Conceptual Framework

A system of ideas and objectives that guides the development of standards and practices in financial reporting and accounting.

Financial Reporting

Financial reporting involves the disclosure of financial information to various stakeholders about the financial performance and position of an organization over a specific period of time.

Measurement

The process of quantifying qualitative financial data in monetary terms through various accounting methods.