The Source of Repayment of a Home Loan Is Expected

question 3

Multiple Choice

The source of repayment of a home loan is expected to come from:

• A) income derived from the property itself
• B) additional borrowing
• C) the personal income of the borrower
• D) other rental income

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Definitions:

Straight-Line

A method of calculating depreciation or amortization by evenly distributing the cost over an asset's useful life.

Double-Declining-Balance

A method of accelerated depreciation where the asset's book value is decreased at double the rate of straight-line depreciation.

Units-Of-Activity

A depreciation method that allocates expense based on the actual usage or activity level of the asset.

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, such as straight-line or declining balance methods.