Answer:
30000
Explanation:
because I was a people that wice
Answer:
The best choice of the four listed is <u>option a.</u> There is less risk that the borrower will be unable to repay the loan.
Explanation:
In an annuity loan, the payment plan is scheduled in many time intervals, meaning that you will have a lot of time to pay the lender money, no matter how small the amount is. The person borrowing is made to pay money, during this time window, many small amounts of money. Since the borrower will be paying small amount of money from time of time until he or she is done repaying, the lender has an advantage in this situation as they will not be losing money.
If a contingency is likely and its financial impact can be assessed with reasonable certainty, a contingent obligation must be recorded. Three types of contingent liabilities are recognized by GAAP.
A contingent liability is what?
A contingent obligation is a responsibility that might materialize based on how a future event plays out. If a contingency is likely and the liability's amount can be anticipated with reasonable certainty, contingent liabilities are recorded. Unless all requirements are not met, the obligation may be mentioned in a footnote to the financial statements.
When Must I Recognize Contingent Liability?
You must be aware of the contingent responsibilities you have assumed if you own a firm or manage its finances. These also need to be recorded. Companies must record contingent liabilities in accordance with the three accounting principles of full disclosure, materiality, and prudence under both IFRS and GAAP (international financial reporting standards).
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