The person or business that receives a loan from a bank or other lender.
The person or business that receives a loan from a bank or other lender.
To receive money in exchange for a promise to repay the amount to the lender.
What is the difference between loan interest and bank loan repayment? Author: Harold Averkamp, CPA, MBA Definition of Loan Interest Loan interest is the expense a borrower incurs for using a lender’s money. Loan...
is located. The mortgage provides a lien on the property that protects the lender if the borrower fails to pay the amounts owed. Example of a Mortgage Loan Typically, mortgage loans are long-term loans requiring monthly...
What is an escrow payment? Author: Harold Averkamp, CPA, MBA An escrow payment is an amount deposited with another party and it is to be released only for its specified purpose. The following is one example of an...
What is accrued interest? Author: Harold Averkamp, CPA, MBA Definition of Accrued Interest Accrued interest is the amount of loan interest that has already occurred, but has not yet been paid by the borrower and not yet...
What is the difference between Notes Payable and Accounts Payable? Author: Harold Averkamp, CPA, MBA Definition of Notes Payable The account Notes Payable is a liability account in which a borrower’s written promise to...
of the promissory note is known as the borrower or debtor and records the amount owed in a liability account such as Notes Payable. The person or organization that has the right to receive the money when the promissory...
was purchasing a house for $170,000. In other words, you made a $150,000 investment and recorded it as the asset Mortgage Loan Receivable. The house is the collateral for the loan receivable. Within one year, the local...
is the borrower. To use your friend’s car, you might ask “May I borrow you car? or “Will you lend me your car?” If your friend agrees, you are borrowing your friend’s car and your friend is lending his or her...
promissory note is both of the following: It is a note payable for the borrower who reports the note on its balance sheet as a liability It is a note receivable for the lender who reports the note on its balance sheet...
The amount that a bank commits to lend a borrower during a specified purpose.
The borrower who provides to a lender an asset as collateral for a loan.
A loan from a bank or other lender in which the borrower has pledged an asset as collateral in case the loan cannot be repaid in full.
What is credit analysis and financial analysis? Author: Harold Averkamp, CPA, MBA Credit analysis is associated with the decision to grant credit to a customer. It is also part of a bank’s lending procedures for making...
A lender such as a bank who has placed a lien on a borrower’s assets. As a result, the lender has collateral until the loan amount is repaid.
How do I record an advance to an employee and the deduction? Author: Harold Averkamp, CPA, MBA Definition of Advance to an Employee A cash advance to an employee is usually a temporary loan by a company to an employee....
A loan from a bank or other lender for which the borrower is not required to pledge assets as collateral for the loan.
A loan having the security of a lien on the borrower’s real estate.
To loan money for a limited time in exchange for the borrower’s promise of repayment and interest compensation.
Usually a bank, finance company, or person that makes a loan to another party, who is referred to as the borrower.
that remain to be paid. Since a note payable will require the issuer/borrower to pay interest, the issuing company will have interest expense. Under the accrual method of accounting, the company will also have...
statements that have been compiled by a certified public accountant. (The bank does not require the borrower to incur the expense of a CPA’s review or audit.) Join PRO to Track Progress Mark the Question as Read...
What is a lien? Author: Harold Averkamp, CPA, MBA Definition of Lien A lien is a legal document filed by a creditor (lender) in order to record its claim on certain assets of the debtor (borrower). The lien is likely...
by a borrower but the interest has not been recorded. Paying The Interest To The Lender Wrong. 13. In the case of a bank's accrued interest revenues, which occurs first? Earning The Interest Revenues Right! Accrued...
Our Explanation of Financial Ratios includes calculations and descriptions of 15 financial ratios. As you calculate the financial ratios you will also gain a deeper understanding of a company's operations and financial...
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