Which of the Following Statements Is False

question 19

Multiple Choice

Which of the following statements is false?

• A) With a discount loan, the borrower is required to pay the interest at the end of the loan period.
• B) Bridge loans are often quoted as discount loans with fixed interest rates.
• C) A bridge loan is another type of short-term bank loan that is often used to "bridge the gap" until a firm can arrange for long-term financing.
• D) After a natural disaster, lenders may provide businesses with short-term loans to serve as bridges until they receive insurance payments or long-term disaster relief.

---

Definitions:

Equipment

Tangible property or assets used in the operation of a business to carry out specific tasks, excluding inventory or assets intended for sale.

Unearned Fees

Income received by a company for services yet to be provided; recognized as a liability until the service is performed.

Fees Earned

Income generated from providing services or performing work for clients or customers.

Adjusting Entry

A journal entry made in accounting to record changes in revenue and expense accounts in order to match revenues and expenses to the period in which they occurred.