Answered: Which statement is NOT true of…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Question

Which statement is NOT true of Asset-backed securities and Mortgage-backed securities in the Philippines? *

Asset-backed securities (ABS) are certificates issued by a Special Purpose Trust (SPT) representing undivided ownership interest in the asset pool.

ABS are eligible as collaterals for loans extended by a bank which originated/sold the underlying assets of such ABS.

ABS and MBS benefit sellers because they can be removed from the balance sheet, allowing sellers to acquire additional funding.

Investors in the Philippines are wary on the reliability of MBS specifically those backed by assets of low income households and those originated by publicly controlled finance institutions.

Mortgage-backed securities (MBS) are formed by pooling together mortgages.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions