When a Creditor's Receivable Becomes Impaired Due to a Troubled

question 105

True/False

When a creditor's receivable becomes impaired due to a troubled debt restructuring, the receivable is revalued based on the discounted present value of currently expected cash flows at the loan's original effective rate.

---

Definitions:

Banking Section

The part of an organization or software that deals with financial transactions and account management with banks.

Receive Payments

It refers to the process of collecting money from customers or clients for goods sold or services rendered.

Pay Sales Taxes

This term refers to the process of remitting taxes collected from customers on sales transactions to the relevant government authority.

Write Checks Window

In accounting software, a feature that allows users to fill out and record checks issued to pay for expenses or other transactions.