Question
Match the terms with the correct definitions.. balance sheet charge-off collateral risk factor Insolvent
Answers
GPT-4o mini
Here are the terms matched with their correct definitions:
1. **Balance Sheet**: A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
2. **Charge-off**: The process by which a creditor recognizes that an amount of debt is unlikely to be collected and writes it off as a loss.
3. **Collateral**: An asset that a borrower offers to a lender to secure a loan, which can be seized if the borrower fails to repay the loan.
4. **Risk Factor**: A variable associated with a level of risk or potential financial loss, often used in evaluating investments or business decisions.
5. **Insolvent**: A financial state in which an individual or organization is unable to meet its debt obligations as they come due, indicating a lack of assets to cover liabilities.
Let me know if you need further details on any of these terms!
1. **Balance Sheet**: A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.
2. **Charge-off**: The process by which a creditor recognizes that an amount of debt is unlikely to be collected and writes it off as a loss.
3. **Collateral**: An asset that a borrower offers to a lender to secure a loan, which can be seized if the borrower fails to repay the loan.
4. **Risk Factor**: A variable associated with a level of risk or potential financial loss, often used in evaluating investments or business decisions.
5. **Insolvent**: A financial state in which an individual or organization is unable to meet its debt obligations as they come due, indicating a lack of assets to cover liabilities.
Let me know if you need further details on any of these terms!