6-50 Which of the Following Is a Major Source of Debt

question 6

Multiple Choice

6-50 Which of the following is a major source of debt for a captive finance company?

• A)Premiums.
• B)Deposits.
• C)Equity.
• D)Bank loans.
• E)Parent company.

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Definitions:

Notes Payable

Liabilities represented by written promises to pay a specified sum of money, usually with interest, by a certain date.

Notes Payable

A written agreement where the borrower promises to pay back a specified sum to the lender by a certain date.

Interest Expense

The amount a company has to spend over time for taking out loans.

Sales Taxes Payable

This account reflects the amount of sales tax collected from customers by a company on behalf of state and local governments, which is to be remitted to those governments.