Answered: What concerns might a loan officer have…

What concerns might a loan officer have when loaning funds to a sole proprietorship that he or she might not have when loaning funds to a corporation?

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter9: Accounting For Purchases And Cash Payments

Section9.1: Subsidiary Ledgers And Controlling Accounts

Problem 3AYU

See similar textbooks

Related questions

Q: How does using the accounting support fee to fund the FASB create more independence than using…

A: Answer:- FASB:- To establish and advance Generally Accepted Accounting Principles in the U.S. in the…

Q: What is a contingency? Why are contingencies important to users of financial statements? What are…

A: When there is a scenario in which the conclusion cannot be predicted and which must be handled in…

Q: Which type of business organization provides the least amount of protection forbankers and other…

A: Corporation: Corporation is the form of organization that has legal existence that is owned and…

Q: What are two major legal differences between state governments, and businesses, that would affect…

A: Financial reporting is defined as the financial results of the firm that are released for its…

Q: Which of the following is NOT an advantage of private debt over public debt? A) It is liquid.

A: Private debt investing offers many potential advantages such as higher yields, greater security (and…

Q: Which of the following is not a liability? a) Amounts owed to shareholders as capital b)…

A: Amount owed to shareholders is not a liability. We recognise liability in the balance sheet if there…

Q: The shareholder is usually liable for the corporation’s debts.

A: Shareholders refer to a person or entity who is owning shares in the company’s stock. One…

Q: What are consequences of false declaration in accounting for creditors, investors and government

A: Stakeholders: Stakeholders envelop all people or gatherings that have a personal stake in the…

Q: How does the deductibility of interest and dividends by the paying corporation affect thechoice of…

A: A way to finance the capital requirement by the category of ownership in a company that has the last…

Q: When should liabilities for each of the following items berecorded on the books of an ordinary…

Q: When we look at GAAP are corporations required by GAAP to have an accrual or cash basis of…

A: According to Generally Accepted Accounting Principles (GAAP), corporations are required to use the…

Q: How do the responsibilities of private accountantsand public accountants differ?

A: A public accountant works with a public accounting company that provides other companies,…

Q: How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the…

A: Introduction: This question stated that the company made the provision or provided for allowance for…

Q: Which of the following is not primary reason why corporation invest in debt . Select one: a. they…

A: There are several reasons why corporate invest in debts or equity. They mainly includes: They have…

Q: Why might the decision to own rather than lease real estate have an unfavorable effect on the…

A: Real estate investing: Real estate investing is defined as the acquisition of property as an…

Q: How much must be received by the creditors, respectively

A: In the event of bankruptcy, creditors are paid in a proper order prescribed. First secured creditors…

Q: How did the Sarbanes–Oxley Act impact corporations’ financial reports?

A: The sarbanes Oxley act had a significant impact on the corporate governance of the us corporations,…

Q: If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the…

A: The system followed by corporations for governing, directing and controlling them represents their…

Q: Which types of loans to executives are permitted by the Sarbanes–Oxley Act?

A: Personal loans to executives are not allowed under Sarbanes–Oxley Act as it may lead to lack of…

Q: Why do governments intervene in setting accounting standards instead of leaving it to the private…

A: Government and politicians frequently become involved in financial accounting regulation. The…

Q: Which type of business will most likely have problems with insufficient funds for business?…

A: Business formation is a procedure through which an individual and group can start manufacturing…

Q: a financial accountant.

A: Option A is wrong because a financial accountant can be certified or uncertified. Option B is wrong…

Q: How would the transactions be reconciled if the bad debt allowance was changed to a bad debt…

A: Bad debts written off is an expense that is treated as irrecoverable and hence debited to profit and…

Q: Which of the following is considered or construed as an example of "constructive receipt"?

A: GIVEN the following is considered or construed as an example of "constructive receipt" is

Q: In a sole proprietorship, the creditor can run after the personal asset of the owner.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Which of the following is not a description of a classification of a financial institution? An…

A: Financial institution is a form of institution which helps in managing and saving of funds or…

Q: Suppose your company raises funds from outsidelenders. What type of agency costs might occur?How…

A: There is a separate clash among the lending and the creditor for the reason that the debtor makes…

Q: What is bought and sold in the equities market? What’s the difference between an LLC and a standard…

A: Since there are more than one question is posted at a time. As per rule, only one question can be…

Q: e way they account for business-type activities, such as dining halls, gift shops, and admission…

A: Non profit organizations are more important to not-for-profit organisations than development…

Question

What concerns might a loan officer have when loaning funds to a sole proprietorship that he or she might not have when loaning funds to a corporation?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

How would the transactions be reconciled if the bad debt allowance is changed to a write-off but the corporation is able to retrieve the funds?
Which of the following is not a description of a classification of a financial institution? An entity that accept money from public and use such to financial instruments issued by businesses or government. An office that collect taxes from registered individuals. An associations whose members are supposed to have a common bond. A company that offers a variety of savings and loan products.
Why might the decision to own rather than lease real estate have an unfavorable effect on the corporation’s financial statements?
Suppose your company raises funds from outsidelenders. What type of agency costs might occur?How might lenders mitigate the agency costs?
Why is an owner's valuation of a borrowing business excluded from stated net worth to arrive at outside net worth?
If the assets of a corporation are not sufficient to satisfy the claims of its creditors, the creditors can make claims against the personal assets of the owners. True or False The owners of a corporation are personally responsible for the debts of the corporation. True or False
How would the transactions be reconciled if the bad debt allowance was changed to a bad debt write-off but the corporation was able to recover the funds?
Which of the following is not a liability? a) Amounts owed to shareholders as capital b) Government grants repayable c)Rebates payable d) Debentures
Can corporation use the Cash method of accounting? Explain.
How did the Sarbanes–Oxley Act impact corporations’ financial reports?
As per IAS 16: PPE, how would you recognize your company’s assets that were acquired with the intention of generating Revenue? Explain how you would treat debtors of business?
Why would a creditor of a corporation consider suing shareholders of that corporation for a debt owed by the corporation to the creditor?A. The corporation has gone out of business.B. The debt is for a lot of money.C. The shareholder is usually liable for the corporation’s debts.D. The creditor had a contract with the corporation.