If the Lender Has the Right to Take Certain Specified

question 59

Short Answer

If the lender has the right to take certain specified assets of the borrower in the event of a default on the loan, the loan is a(n) ________ loan.

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Definitions:

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and other investments not classified as cash equivalents.

Financing Activity

Refers to transactions and events that affect long-term liabilities and equity of a company, including securing loans and issuing shares.

Investing Activity

Financial actions related to the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Mortgage Payable

A long-term liability representing the amount owed on a property mortgage, which is to be paid back over a period.