Discuss how accounts receivable and inventory can be used as collateral for short term securedloan.

Q: Describe the accounting for refund liabilities.

A: Liabilities:   The liabilities are the amount of money which a business has to pay to the outside…

Q: Define the term Deferred Loan Repayments?

A: Answer: A deferred loan payment is nothing but a loan agreement in which the borrower may start…

Q: What is the importance of proper loan documentation?

A: Loan documentation are documents that lenders request from borrowers for the purpose of providing…

Q: what is the best provisioning methodology in loan impairement and why?

A: Impairment refers to a reduction in an asset's value. It's similar to depreciation but it's applied…

Q: Identify which one of the following is also called as Fixed deposit account? a. Demand deposit b.…

A: Fixed deposit accounts are fixed deposit accounts have fixed MATURITY period and can be withdrawn…

Q: How can we determine a Loan's Balance, Principal, and Interest?

A: Loan balance can be determined with the help of formulae: PV is present value r is rate N is number…

Q: How is Collateralized debt obligation created. Plelase explain in details

A: Collateralized debt obligation (CDO): Collateralized debt obligation (CDO) is the bundle of loans…

Q: Explain the characteristics of  liabilities.

A: Liabilities:   It refers to the debts owed by the business for outside entities as a result of…

Q: Illustrate some examples in the area of loan transactions?

A: Loan transactions Accounting: Loans refer to one of the best options for financing. Every business…

Q: What is the Importance of Accrued Interest and Loan Payments?

A: When the bonds are being purchased and sold at that time accrued interest is considered to be…

Q: Define Receivable Management and Credit Policies

A: Receivable Management : managing the outstanding   Credit Policies  : Selling on credit to parties…

Q: What two types of current assets are frequently used as security for short-term loans?

A: Short term loans are generally obtained by companies in order to support their temporary business…

Q: What are receivables credits? Please explain.

A: Receivable refers to the assets of the company created due to sale of goods and service on credit to…

Q: Discuss in brief the types of collateralized debt Obligation. Please explain in details.

A: Solution-  Collateral Debt Obligation [CDO] is a sophisticated project financing outcome that's also…

Q: What types of short-term credit are classified as accrued liabilities?

A: An accrued liability means the expense of the business incurred during a specific period but has yet…

Q: Explain how to account for the impairment of held-to-maturity debt security.

A: Held to maturity securities are those securities which are purchased to be held till maturity…

Q: gent liab

A: Contingent Liability A contingent liability is an obligation that may arise as a result of the…

Q: EXplain the loan structuring?

A: Loan restructuring is designing of loan according to the requirements of the borrower and also to…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: Describe the concept of non interest bearing on loan.

A: A non-interest bearing loan is a debt for which there is no documented requirement for the borrower…

Q: Describe the key characteristics of a debt investment and demonstrate how to account for a purchase…

A: Debt Instrument:   A debt instrument is a financial instrument that enables the issuer of the…

Q: Explain the term Verification of Borrower Assets?

A: Borrower is the person who take money on credit from a financial or non- financial institution.…

Q: Explain the term Loan Repayment Schedule?

A: Loan is a sum of money borrowed by an individual/organization from a bank or lender that has to be…

Q: How does getting a secured loan using accounts receivableas collateral differ from factoring?

A: In factoring, the corporation sells their receivable balance to the factoring corporation at a…

Q: What is Accrued receivables?

A: Accruals:Accruals are the revenues that are earned but not received, and expenses that are incurred…

Q: WHAT IS THE LOAN FACILITY THAT WILL BE USED TO COVER THE DEPOSIT AND CLOSING COST

A: Credit facility Meaning: Credit facility is type of loan that is made business and corporate…