Loans Which Are Initially Drawn Down to the Full Amount

question 8

Multiple Choice

Loans which are initially drawn down to the full amount and repaid over the term of the loan by a fixed repayment schedule are known as:

• A) instalment loans.
• B) interest only loans.
• C) fully drawn advances.
• D) business loans.

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Definitions:

Overhead Costs

Indirect costs related to the general operation of a business that cannot be directly tied to a specific product or service.

Financial Accounting

The field of accounting that focuses on the preparation of financial statements for external users, such as investors, regulators, and suppliers.

Managerial Accounting

A field of accounting focused on providing financial data and analysis to managers within organizations to facilitate informed decision-making.

Internal Control System

A process implemented by a company to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.