In many cases, bank lenders prefer the asset approach. Explain why.

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Forensic Accounting and Fraud Examination

ISBN: 978-0078136665

2nd edition

Authors: William Hopwood, george young, Jay Leiner

See More Books

Question Posted: Mar 20, 2015 12:03 PM

See More Questions

Explain why a company would prefer a foreign currency option over a forward contract in hedging a foreign currency firm commitment and why a company would prefer a forward contract over an option in...
Why do many managers prefer a stable dollar dividend policy to a policy of paying out a constant percentage of each years earnings as dividends?
Why do many operating managers prefer a contribution income statement instead of a traditional income statement?
The unadjusted trial balance of Mesa Inc., at the company's year end of December 31 follows: Additional information and adjustment data: 1. The 12-month insurance policy was purchased and was...
Given independent random variables with means and standard deviations as shown, find the mean and standard deviation of: a) 3X b) Y + 6 c) X + Y d) X - Y e) X1 + X2 Mean SD X 10 2 Y 20 5
Dissolving 3.00 g of an impure sample of calcium carbonate in hydrochloric acid produced 0.656 L of carbon dioxide (measured at 20.0C and 792 mmHg). Calculate the percent by mass of calcium carbonate...
Name a major difference between software development life cycle methodologies and ad hoc approaches to developing a software product.
Laras Landscaping Service has the following chart of accounts: Assets 111 Cash 113 Accounts Receivable 115 Supplies 117 Prepaid Insurance 124 Equipment Liabilities 221 Accounts Payable Owners Equity...
David Ltd sold the following machine in 2017: Cost Purchase date Useful life Residual value Selling date $150,000 1 July 2014 5 years $10,000 1 July 2017 $74,000 Sales proceeds Required: 1. Prepare...
There is a database that contains a website's traffic data over a period of 30 days. The first table contains users' information including the user type (user, crawler, admin). The second table...
The market approach bases its estimates on comparable assets. Explain.
Explain the difference between marketability and liquidity.
The data file Economic Activity contains data for 50 states in the United States. Develop a multiple regression model to predict total retail sales for auto parts and dealers. Find two or three of...
Financial Considerations in Estate Management: Balancing Profitability with Sustainability in the Caribbean
Oil and gas is regulated in order to: Group of answer choices A. Protect the resource B. Reduce financial gain C. Prevent waste of the resource A and B A and C
lleverage can make it relatively harder for the investors to remove their money from a hedge fund
3. Based on everything you've read, the payers putting products into the health exchanges want to market these as true, lower cost options. To get there, they will not reimburse as much as other...
A home worth $250,000 with $100,000 still owed on the mortgage would have equity of:
Visit the computer lab at your institute. List the hardware available there and compare your list with the one in Table 11-2 If applicable, highlight any hardware devices not listed in the table that...
Prove the following D,(cos x) = - sin x (Hint: Apply the identity cos(A + B) = cos A cos B sin A sin B)
Use MATLAB to create (a) a row and column vectors that has the elements: $11,-3, e^{7.8}, \ln (59), \tan (\pi / 3), 5$ $\log _{10}(26)$. (b) a row vector with 20 equally spaced elements in which the...
John Adams has a $50,000 adjusted gross income from Apple Corp. and allowable itemized deductions of $5000. Mary Eve has a $45,000 adjusted gross in come and $2000 of allowable itemized deductions....
Bill Jackson worked during school and during the first 2 months of pis summer vacation. After factoring in his deductions and personal exemption as a single man, Bill found that he had a total...
A married couple filing jointly has a combined total adjusted gross income of $75,000. They have computed that their allowable itemized deductions are $4000. Compute their federal income tax.
Blair, CPA, uses the cash receipts and disbursements method of reporting. In Year 7, a client gave Blair 100 shares of a listed corporation's stock in full satisfaction of a $5,000 accounting fee the...
What is driving the increase in the price of healthcare services today? Explain why it is important to know the scope of business being reviewed when using financial statements. Explain the content...
What is a discount? How do you activate discounts? Activate discounts: Assign a discount account: 3. Discounts Given - What is the account type and detail type for this account?

In many cases, bank lenders prefer the asset approach. Explain why.

Question:

Step by Step Answer:

Under the asset approach the value of an asset especially a business is the ...View the full answer

Forensic Accounting and Fraud Examination

Students also viewed these Accounting questions