Multiple Choice
Which of the following usually is not classified as a long-term asset?
17
views
1. Introduction to Accounting
Types of Accounting
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is considered an institutional lender?
A
Individual investor
B
Commercial bank
C
Sole proprietorship
D
Partnership firm
Verified step by step guidance1
Understand the concept of institutional lenders: Institutional lenders are financial institutions that provide loans and credit to individuals or businesses. Examples include commercial banks, credit unions, insurance companies, and pension funds.
Analyze the options provided: Individual investors, sole proprietorships, and partnership firms are not considered institutional lenders because they are not financial institutions. They may provide loans or investments, but they do so on a personal or business basis rather than as a formal institution.
Focus on the correct option: Commercial banks are institutional lenders because they are formal financial institutions that provide loans, credit, and other financial services to individuals and businesses.
Review the characteristics of institutional lenders: Institutional lenders typically have a structured process for lending, are regulated by financial authorities, and operate on a large scale compared to individual or informal lenders.
Conclude that the correct answer is 'Commercial bank' based on the definition and characteristics of institutional lenders.
4:10mWatch next
Master Types of Accounting: Financial and Managerial with a bite sized video explanation from Brian
Start learningRelated Videos
Related Practice
Types of Accounting practice set
Problem sets built by lead tutorsExpert video explanations