In a closing statement, the term "recurring costs" refers to:
A. title insurance
B. costs common to all escrows
C. deed transfer taxes
D. impound items
Answer: D. impound items
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Use the "percent of sales method" of preparing pro forma financial statements to determine the
projection for next year's accounts receivable. Make the following assumptions: current year's sales are $45,450,000; current year's cost of goods sold is $26,950,000; sales are expected to rise by 20%. The firm's investment in accounts receivable in the current year is $8,600,000. The firm's marginal tax rate is 35%. What is the projection for next year's accounts receivable? A) $8,772,000 B) $10,320,000 C) $9,575,000 D) $11,345,000