To loan money for a limited time in exchange for the borrower’s promise of repayment and interest compensation.
To loan money for a limited time in exchange for the borrower’s promise of repayment and interest compensation.
What is the proper use of the words lend and borrow? If a company is granted a loan from its bank, the company is borrowing money from its bank, and the bank is lending money to one of its customers. In other words, the...
The amount that a bank commits to lend a borrower during a specified purpose.
A bank account balance that a corporation agrees to maintain with a current or potential lender. For example, a corporation may agree to keep $1 million in its checking account at a bank in exchange for the bank agreeing...
pays for its purchases 90 days after it receives the goods. The corporation does not have sufficient money to purchase the raw materials, pay for the labor, and then wait 90 days to collect the receivable. The...
. The company’s banker agrees to lend the company $350,000 in the form of a 5-year mortgage loan with monthly payments of interest and principal. The mortgage filed with the county where the warehouse is located shows...
. The employee is unable to pay for the repair and has no other means for getting to work. The company agrees to lend the employee $800 and to withhold $100 per week from the employee’s weekly payroll checks until the...
What is an implicit interest rate? Definition of Implicit Interest Rate An implicit interest rate is one that is not stated explicitly. Example of Implicit Interest Rate Assume that I lend you $4,623 and you agree to...
What is the entry when a company lends money to an employee? Definition of Employee Loan When a company lends money to one of its employees, the company is reducing its Cash and increasing another asset such as Other...
Our Explanation of Accounts Receivable and Bad Debts Expense helps you understand the accounting for the losses associated with selling goods and providing services on credit. You will understand the impact on the...
Usually a bank, finance company, or person that makes a loan to another party, who is referred to as the borrower.
Featured Review
"I am the co-owner of a small-business accounting firm, and I found AccountingCoach when researching training for our staff who do both taxes and bookkeeping. I love the format and how comprehensive the topic categories are. I love the different games and tests you can do to help your staff learn and to test their knowledge. We're implementing a new type of system for employee bonuses based on skills, and I plan to utilize this website to test skills for advancement. We also use these tests to screen potential candidates for job openings at our company. I think it's a great website and I'm excited for the upgrades!" - Julie R.
Join PRO or PRO Plus and Get Lifetime Access to Our Premium Materials
Read all 2,645 reviews
For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.
We now offer 10 Certificates of Achievement for Introductory Accounting and Bookkeeping: