Which of the following is a FALSE statement? A mortgage does not give the lender a right to be paid from the cash proceeds of the sale of a borrowers' assets identified in the mortgage. O Mortgage notes pledge specific assets as security for the note. O A mortgage contract describes the mortgage terms. O Accounting for mortgage notes and bonds is similar to that for unsecured notes and bonds, except that f mortgage agreement must be disclosed.
Which of the following is a FALSE statement? A mortgage does not give the lender a right to be paid from the cash proceeds of the sale of a borrowers' assets identified in the mortgage. O Mortgage notes pledge specific assets as security for the note. O A mortgage contract describes the mortgage terms. O Accounting for mortgage notes and bonds is similar to that for unsecured notes and bonds, except that f mortgage agreement must be disclosed.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Mortgages
A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.
Mortgage
The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.
Question
Transcribed Image Text:2 pt
Which of the following is a FALSE statement?
O A mortgage does not give the lender a right to be paid from the cash proceeds of the sale of a borrowers'
assets identified in the mortgage.
O Mortgage notes pledge specific assets as security for the note.
O A mortgage contract describes the mortgage terms.
O Accounting for mortgage notes and bonds is similar to that for unsecured notes and bonds, except that th
mortgage agreement must be disclosed.
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