What is the concern with the inclusion of fixed-rate mortgage loans in the collateral pool when the liabilities are floating rate?
What will be an ideal response?
The inclusion of fixed-rate mortgage loans in the collateral pool locks in fixed rate payments. If these payments become high when floating rates fall, then problems can result in making payments especially to the subordinate bond classes.
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A company purchased inventory for $100,000 on account and recorded it as follows:
Merchandise Inventory 100,000 Accounts Payable 100,000 The vendor's invoice showed terms of 3/10, net 30 Give the journal entry for the payment of the invoice seven days after the invoice date, assuming that the vendor uses the perpetual inventory system. What will be an ideal response
Writing an online blog uses the same principles as writing a traditional report
Indicate whether the statement is true or false.