Points Are Meant to Pay for Processing a Loan and Are

question 98

True/False

Points are meant to pay for processing a loan and are not finance charges.

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Definitions:

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term contracts in proportion to the work completed.

Contract Costs

Expenses directly related to securing and fulfilling a contract, including raw materials, labor, and overhead.

Percentage-Of-Completion Method

An accounting method used to recognize revenues and expenses of long-term projects proportionally to the degree of completion.

Long-Term Contracts

Agreements that extend over a long period, often used in industries like construction or supply services, specifying performance obligations and payment terms.