Which of the Following Is FALSE Regarding Interest Only Loans

question 16

Multiple Choice

Which of the following is FALSE regarding interest only loans?

• A)They usually have balloon payments
• B)They have greater amortization than conventional loans
• C)They may result in more cash flow to the investor
• D)They may allow for a lower DCR

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Definitions:

Total Inventory

The complete value of a company's raw materials, work-in-progress, and finished goods at a given time.

Perpetual Inventory System

A system for tracking inventory accounting that instantly logs each sale or acquisition of inventory through computerized point-of-sale systems and software for managing enterprise assets.

LIFO

A rephrased definition: An accounting approach to inventory and cost of goods sold valuation that assumes the most recently acquired items are the first to be sold.

Ending Inventory

The value of goods available for sale or use at the end of an accounting period.