At the Date of Purchase of a Service Which Is

question 101

Multiple Choice

At the date of purchase of a service which is not immediately used up, the cost of such unused service is a(n) :

• A) revenue.
• B) liability.
• C) asset.
• D) expense.

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Definitions:

Construction Loans

Short-term loans used to finance the building of a property, with funds released incrementally as construction progresses.

Mortgage Trust

A type of investment trust that pools mortgage loans, offering investors a share in the income generated from these mortgages.

REIT

Real estate investment trust, which is similar to a closed-end mutual fund. REITs invest in real estate or loans secured by real estate and issue shares in such investments.

Front-end Load

A fee or commission charged to an investor at the time of initial purchase of an investment, such as a mutual fund or insurance product, usually a percentage of the investment amount.