Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

7. Receivables and Investments

Types of Receivables

Financial Accounting

7. Receivables and Investments

Types of Receivables

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Multiple Choice

A payment to a mortgage broker by a lender is known as a:

Note receivable

Factoring fee

Yield spread premium

Trade receivable

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Verified step by step guidance

Understand the concept of a 'Yield Spread Premium' (YSP): It is a payment made by a lender to a mortgage broker for originating a loan with an interest rate higher than the lender's par rate. This is a common practice in the mortgage industry.

Review the other options provided: 'Note receivable' refers to a written promise to receive money at a future date, 'Factoring fee' is a fee charged for selling accounts receivable to a third party, and 'Trade receivable' refers to amounts owed by customers for goods or services provided on credit.

Compare the definitions: None of the other options align with the concept of a payment from a lender to a mortgage broker for originating a loan. This confirms that 'Yield Spread Premium' is the correct term.

Understand the relevance of YSP in financial accounting: It is important to recognize how such payments are recorded and disclosed in financial statements, as they impact the cost structure and profitability of mortgage transactions.

Apply this knowledge to similar scenarios: If you encounter terms related to payments or fees in financial accounting, always analyze their definitions and context to ensure accurate classification.