"Truth in Lending" Was Mandated Under the Consumer Protection Act

question 78

True/False

"Truth in lending" was mandated under the Consumer Protection Act of 1969 and requires all lenders to reveal the annual percentage rate,or APR,on loans.

---

Definitions:

Note Receivable

A financial asset representing a written promise for a debtor to pay a certain amount of money to the holder of the note on a specific date or on demand.

Percent of Sales Method

A financial planning tool used to forecast future revenues, expenses, or balance sheet figures as a percentage of sales.

Uncollectible Accounts Receivable

Accounts receivable that are considered to be uncollectible due to the inability of the customers to pay.

Journal Entries

Recorded transactions in the accounting system, documenting financial changes in accounts.