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frozen [14]
1 year ago
6

The overriding objective in the hierarchy of qualitative characteristics of financial reporting information is:________

Social Studies
1 answer:
jeka941 year ago
8 0

'The overriding objective in the hierarchy of qualitative characteristics of financial reporting information is decision usefulness.

The definition of hierarchy is a group of people or things arranged in a hierarchy or people at the top of such a system. An example of hierarchy is the career ladder. An example of hierarchy is the various levels of priests in the Catholic Church.

Hierarchy, in the social sciences, is a ranking of positions of authority, often associated with chains of command and control. The term comes from the Greek hieros (“holy”) and archein (“rule” or “order”).

A hierarchical relationship is a broader (parent/child) relationship between logical records (each record represents a concept). Hierarchical relationships are the main characteristics that distinguish a thesaurus or taxonomy from simple control lists and lists of synonym rings.

Learn more about Hierarchy brainly.com/question/16475842

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(1). Secured loans

Collateral is generally required for secured loans. Secured loan are those for which the borrower, along with a promise to repay, puts up some asset (collateral) as surety for the loan. A secured loan instrument simply means that in the event of default, the lender can use the asset to repay the funds it has advanced the borrower. The risk of default on a secured loans tends to be relatively low since the borrower has so much more to lose by neglecting his financial obligation. Secured loans financing is typically easier for most consumers to obtain. As this type of loan carries less risk for the lender, interest rates are usually lower for a secured loan.

(2). Higher interests rates.

People who get loans but are considered a risk to fully repay them, often get higher interest rate. Because the risk to the lender is increased relative to that of secured debt, interest rates on unsecured debt tend to be correspondingly higher. However, the rate of interest on various debt instruments is largely dependent on the reliability of the issuing entity. An unsecured loan to an individual may carry astronomical interest rates because of the high risk of default.

(3). Higher total payment.

An unsecured loan to an individual may carry astronomical interest rates because of the high risk of default. Lenders issue funds in an unsecured loan based solely on the borrower's creditworthiness and promise to repay. Unsecured loan has no collateral backing, It involves no security, Hence, If the borrower defaults on this type of debt, the lender must initiate a lawsuit to collect what is owed.

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Although Serbia is wealthy with the natural resources of coal, iron ore, oil, gas, gold, silver, copper, zinc, antimony, magnesium, limestone, and marble, yet it failed to develop as an important sources of such resources because it's fluctuating economical states and small mining sectors that can hardly supply the demand.

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