Question

Nancy is buying a house and made a list of her expenses: mortgage payments, utilities, closing costs, prepaid interest, origination fee, and insurance payments. Separate each of the six expenses as either a recurring or a non-recurring cost.

Answer 1

Answer:

Recurring-Mortgage payments, Utilities, insurance payments

Non-recurring-Prepaid interest, Origination fee, Closing costs.

Step-by-step explanation:

Recurring cost are usually administrative  operating expenses. Since they are operating expenses, they have to be paid from time to time to ensure active operations.

The recurring expenses are:  Mortgage payments, Utilities, insurance payments.

#Non-recurring costs are one off and are capital in nature.

They include Prepaid interest, Origination fee, Closing costs.