One of the Unique Aspects of Microfinance Loans Is That

question 19

True/False

One of the unique aspects of microfinance loans is that only a small amount of collateral is needed and the loans are usually repaid between two to five years.

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Definitions:

Liability Account

A type of financial account which represents a company's legal debts or obligations that arise during the course of business operations.

Expense Account

An account used in accounting to track expenditures related to the operation of a business, including costs for goods, services, and operational activities.

Adjusting Journal Entries

Entries in accounting made during the close of a financial period, aiming to accurately allocate profits and expenditures to their respective periods of occurrence.

Net Income

A company's overall earnings following the deduction of all expenses and taxes from its total revenue.