Answer:
A <u>SUBPRIME</u> borrower is a borrower with a flawed credit history and an <u>ALT-A BORROWER</u> is a borrower who states his or her income but does not document or prove the amount of income.
Explanation:
Subprime borrowers are borrowers that have a bad credit score and because of this, any bank or other lending institution will either reject them as clients or charge them a really high interest rate on a loan.
An Alt-A borrower is in the middle between a prime borrower (good credit score) and a subprime borrower. He/she will not get rejected as often, but the interest rates will still be relatively high and the amounts of money borrowed tend to be smaller than prime borrowers. Some companies like Fannie Mae or Freddie Mac do not accept Alt-A borrowers, but most banks do.
Gross income, or gross profit I think
I believe the answer is D: Horizontal.
Answer:
Nil or $0
Explanation:
The entire amount of $1,720,000 should be reported as long term liability, as the both the criteria of intent and ability are met. The second note (long term note) was issued to repay the first one. It is presumed the firm did not have enough current assets to pay the first note and that the second note is made before the issue of the balance sheet. So, the amount to be reported as current liability is "nil".
Answer: equals sales revenue minus variable costs
Explanation: In simple words, contribution margin refers to the amount of revenue that an organisation is left with after paying for the variable expenses that are incurred for the generation of such revenue.
It is an important aspect of an organisation as it somehow depicts the ability of it to pay its fixed expenses like interests etc.
