Which of the Following Closing Costs DO NOT Increase the Lender's

question 20

Multiple Choice

Which of the following closing costs DO NOT increase the lender's effective loan yield?

• A)Discount points
• B)Prepayment penalties
• C)Title insurance charges
• D)Origination fees

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of accounts receivable that is not expected to be collected.

Subsidiary Ledger

A ledger that contains accounts of a single type. Example: The accounts receivable subsidiary ledger records all credit customers.

Uncollectible

Refers to accounts receivable that are unlikely to be recovered from debtors.

Debited

An accounting term describing an entry that increases an asset or expense account, or decreases a liability or equity account.