a. Distinguish between loan sales with and without recourse. b. Why would banks want to sell loans with recourse? c. Explain how loan sales can leave banks exposed to contingent interest rate risks. Briefly explain the differences between the terms...
Define or describe the following term: Amortization. Briefly describe HMPP. a) Explain financial intermediation. b) Summarize the benefits of financial intermediation. What type of lease must be treated as a capitalized lease on the balance sheet? How does the financial manager capitalize on a lease?
000,000 and with a useful life of 50 years. The patent expires and cannot be renewed. The second is a trademark worth $1,000,000 and with a useful life of 10 years, after which it expires. However, the trademark can be renewed at a marginal cost. What is McRonald’s amortization e...
Each account in the chart of accounts is typically assigned a name and a unique number by which it can be identified. (Software for some small businesses may not require account numbers.) Account numbers are often five or more digits in length with each dig...
Amortization Expense While PP&E is depreciated, intangible assets are amortized (except for goodwill). These assets are amortized over the useful life of the asset. Generally, intangible assets are simply amortized using thestraight-line expensemethod. ...
Briefly describe two off-balance sheet activities and why banks favor the use of these. Explain the factors that influence the optimal cash level for a business. What considerations motivated FASB's 2001 decision to disallow the amortization of goodwill on the income state...
c) Of the four classes, which, is t How can you make it easier to balance cash accurately? Explain why firms need to use both debt and equity instruments. Explain in your own words what the amortization of a bond discount or a bond...
What will most likely happen to the prices of previously issued bonds and the price level in the short run? Explain. Is a revolving line of credit a loan? A lender requires 2 points on a $250,000 loan with a 7% rate amortization over a 25 year-term, ...
Even though EBITDA excludes the non-cash expenses of depreciation and amortization, it should not be considered a measure of cash flow. a. True b. False True or false? The cash ratio is a more conservative measure of liquidity than the quick ratio. In relation...
Briefly explain the differences between the terms, depreciation, depletion, and amortization. What is the difference between debt and equity financing? Identify three examples of differences with no deferred tax consequences. What is the difference between equity financ...