Question
1.Commercial mortgages are secured against land and building and: Multiple Choice Have interest rates fixed for the amortization period Have an amortization period less than
1.Commercial mortgages are secured against land and building and:
Multiple Choice
-
Have interest rates fixed for the amortization period
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Have an amortization period less than the term of the loan
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Have blended payments due monthly or semi-annually
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Are required to be renewed by the lender at the end of the term
2. Which of the following characteristics might cause the reclassification of a liability from long-term to current?
Multiple Choice
-
Violation of a provision of a long-term debt covenant
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Short-term obligations that are expected to be refinanced with long-term debt
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Unearned revenue that involves long-term deferment of the delivery of goods
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Long-term debt to be liquidated from a sinking fund that is reported as a non-current asset
3. Which of the following does NOT trigger the commencement of capitalizing borrowing costs? When
Multiple Choice
-
Money is borrowed
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A payment is made on the asset
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when the order is placed for the asset
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When activities begin to make the asset ready for use
4. A form of interest free financing is:
Multiple Choice
-
Commercial paper
-
Demand loan
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Trade payables
-
Unearned revenue
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