Where a Bank Has Approved a Loan but the Borrower

question 17

Multiple Choice

Where a bank has approved a loan but the borrower has not yet drawn it down,the usual practice in the financial statements of the bank is to:

• A) include the undrawn amount as a liability in the Balance Sheet
• B) include the undrawn amount as a contingent liability in the financial statements
• C) make no specific disclosure of the details of this type of item
• D) disclose the amount expected to be drawn down in the following twelve months

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Definitions:

Diagnostic Criteria

The specific conditions or behaviors listed in the DSM or other medical references that must be present for a diagnosis of a particular mental or physical health disorder.

Insomnia Disorder

A chronic condition characterized by difficulty falling or staying asleep, which impacts daily functioning.

Epigenetics

Research on the influence of gene expression changes, as opposed to genetic code alterations, in the development of organisms.

Psychological Disorder

A pattern of behavioral or psychological symptoms that impact multiple areas of life and create distress for the person affected.