A firm's bank reconciliation statement shows a book balance of $16,820, an NSF check of $900, and a service charge of $70. Its adjusted book balance is:

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Answer 1

Its adjusted book balance is $15,850 at  book balance of $16,820 and NSF check of $900.

given data:

book balance = $16,820

NSF check = $900

service charge = $70

The adjusted book balance will be calculated as:

= $16,820 – 900 – 70

= $15,850

Since the bank's deductions for NSF checks and service fees were not reflected in the book balance, they will be lowered.

The cash balance listed in an organization's accounting records is known as the book balance. Transactions that haven't settled or gone through the bank account's clearing process may be included in the "book balance." The monthly bank statement is used by businesses to reconcile their book balance at the conclusion of each accounting period with their bank balance.

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Related Questions

Which of the following is not one of the purposes of an internal control system?
A) The evaluation of performance
B) Safeguarding the company's assets
C) Ensuring that the company is using the most effective marketing plan
D) The assessment of the degree of compliance with company policies and public laws

Answers

C). A system of internal controls is not intended to ensure that an organization is employing the best marketing strategy.

Describe the internal control system.

Internal control is a practice carried out by management, the board of directors, and other employees of a firm with the goal of providing a reasonable level of assurance that the information is accurate, timely, and reliable.

Internal controls were developed as a means of safeguarding a business and lowering the risk to its objectives. Internal controls support risk mitigation, asset protection, accurate record-keeping, improved operational performance, and regulatory compliance.

Types: There are two main types of internal controls: preventative and detective. Both belong to a successful internal control system.

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Which of the following is not one of the benefits accrued from a centralized purchasing function?
a. leverage purchase volume for better pricing
b. devote more resources to the supplier selection and negotiation process
c. maintain professional control over the purchasing process
d. increase the duplication of tasks

Answers

d. increase the duplication of tasks

One way is to complete VA Form 21-438, Statement in Support of Claim, and include a copy of the death certificate with the form.

What should be done with VA benefits after a death?

For deaths occurring on or after October 1, 2019, VA will pay up to $796 toward burial and funeral costs (if the deceased was hospitalized by VA at the time of death) or $300 toward burial and funeral costs (if the deceased was not hospitalized by VA at the time of death), as well as a $796 plot-interment allowance (if not buried in a national cemetery).

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Suppose the store wants to earn a daily profit of $150 from the sale of soccer balls. To earn this profit, what price should the store charge for each soccer ball

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Each soccer ball should cost either x = 4.532 or x = 12.134.

How to calculate correct price?

Simply said, profit is total revenue less total costs. It reveals how much your company made after expenses.

Soccer ball profit

[tex]y=-6x^2 + 100x\ -180[/tex]

Profit required = 150

Formula:

The quadratic equation's quadratic formula is -

[tex]x=\frac{-b+-\sqrt{b^2-4ac} }{2a}[/tex]

In this scenario, $150 in daily earnings is needed.

then Y = 150 in the equation then,

150 = -6x^2 + 100x – 180

Taking 150 to L.H.S. and fliping the sign:

0 = 6x2+100x-180-150

0 = 6x2+100x+330

Solving the new quadratic equation:

[tex]x=\frac{-(-100)+-\sqrt{(-100)^2-4(6)(330)} }{2(6)}[/tex]

[tex]x=\frac{100+-\sqrt{10000-7920} }{12}[/tex]

[tex]x=\frac{100+-\sqrt{x} 2080}{12}[/tex]

Simplifying the radical:

[tex]x=\frac{100+-4\sqrt{130}}{12}[/tex]

[tex]x=\frac{4(25+-\sqrt{130} }{12}[/tex]

[tex]x=\frac{25+-\sqrt{130}}{3}[/tex]

which becomes

x = 4.532

x = 12.134

Consequently, the appropriate cost for each soccer ball would be:

x = 4.532 or  x = 12.134

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The full question is,

Suppose the store wants to earn a daily profit of $150 from the sale of soccer balls. to earn this profit, what price should the store charge for each soccer ball? explain how to solve this problem.

Carla creates a trust to convey her assets to her children. Her brother, Alvin, is placed in charge of making sure the terms of the trust are carried out. In this example, Carla is the ________.

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In this example, Carla is the truster.

A child asset is any asset that is tied to or closely linked to another asset, which is its parent asset, according to the broadest definition. It is an element or component within a bigger asset that can be maintained, repaired, or replaced.

Start by reducing. Consolidate and close any unnecessary brokerage, Demat, and bank accounts. Keep only the bare minimum. Ensure that nominations are finished for the active accounts, that online access is enabled, and that usernames are handed along with inheritance.

Family assets are assets (real estate, pensions, enterprises, vehicles, etc.) accumulated by one or both of the parties during the duration of the relationship. This also covers the increase in the equity or worth of a resource that existed independently of the relationship.

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within how many days must a rollover be completed in order to avoid being taxed as current income quiz

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Within 60 days a rollover from a Traditional IRA to another IRA must be done To avoid tax consequences. So that, if we deposit the amount into another eligible plan, we don't have to include in our gross income any amount distributed  from an IRA.

In economy and business, A traditional IRA generally can be defined as a way to save for retirement that gives tax advantages.  An individual retirement arrangement that established in the United States by the Employee Retirement Income Security Act of 1974 also can be used to described A traditional IRA.  Depending on our filing income and status, contributions that we make to a traditional IRA may be fully or partially deductible.

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Attracting outside investment is easier for corporations than for sole proprietorships and partnerships because:

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An investor's ownership interest may be sold at any moment, without altering the corporation's legal form or how it does business. A corporation has an easier time luring outside investment than a sole proprietorship.

What exactly is business investment?

Business investment refers to outlays made by for-profit organizations and private companies for fixed assets used to generate goods and services.

How might a novice invest in a company?

Utilize your associated banking account to open a Trading profit and loss account. Access that trading account. Make sure you have the necessary cash on hand to purchase the shares.

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If deposit insurance is most important to you when selecting a financial institution, you are most concerned witha. safetyb. conveniencec. services

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You are most concerned with safety if deposit insurance is the factor that matters to you the most when choosing a financial institution.

What do you mean by  financial institution?

Some of life's most significant moments are supported by financial institutions. Make sure the bank satisfies certain requirements before deciding where to keep your money. A place that completes and facilitates monetary transactions, such as loans, mortgages, and deposits, is often referred to as a financial institution.  When picking a bank to keep their money with, customers can make an informed decision if they are aware of the essential characteristics of financial institutions.

So, The required answer is safety.

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For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender

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At the time of surrender, the person will receive C. a calculated amount of money which includes the premiums paid as well as the interest on that money.  If the policy has been in effect for five years and has built up a cash value, the person may receive more than the initial premium paid, but it will be less than the death benefit.

The amount that the person will receive when they surrender their whole life insurance policy with a cash value clause will depend on several factors, including the current cash value of the policy, any outstanding loans or penalties, and the terms of the policy. In general, the person will receive the current cash value of the policy minus any outstanding loans or penalties.

The missing part in the question is shown below.

For the past five years, a person has had a $20,000 whole life insurance policy that has a cash value clause. The person decides to surrender the policy. At the time of surrender, the person will receive:

A: one-fifth of the $20,000 face value.

B: $20,000 less the premiums paid.

C: a calculated amount of money which includes the premiums paid as well as the interest on that money.

D: a calculated amount of money that must be converted to a term life insurance policy.

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What happens when a person writes a check but there are insufficient funds in his or her bank account?

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This means the check will not be able to be processed and the person will likely incur a fee from their bank. Additionally, the person may be charged a fee by the person or entity to whom the check was written.

What are the common reasons for a check to bounce?

There are several common reasons for a check to bounce, including insufficient funds in the account, closed account, an account that is no longer active, or a mistake when writing the check such as incorrect date, amount, or payee. Additionally, if a check is written for an amount that exceeds the account balance and any available overdraft protection, it will also bounce.

What are the consequences of a bounced check?

The consequences of a bounced check can vary depending on the reason for the bounce, the amount of the check, and the person or entity to whom the check was written. Some common consequences include incurring a fee from the bank and the person or entity to whom the check was written, a negative impact on the person's credit score, and possible legal action, depending on the circumstances. It is also considered as a criminal offence in some countries and states, if done intentionally or repeatedly. Additionally, if the bounced check was written to a business, it can result in the person being added to a “bad check” database or being banned from doing business with that company in the future.

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Which of the following is true when the estimate of an asset's useful life is changed?
A) The new estimate is ignored until the last year of the asset's life.
B) The depreciation expense in the prior year is restated.
C) Prior years' financial statements must be restated.
D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

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Answer:

D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

What are the factors needed to consider in buying and selling products and services?

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Cost, customers, positioning, competitors, and profit are the factors needed to consider in buying and selling products and services.

First and foremost you require to be financially informed. Before you incubate your pricing, bring out the costs concerned with streaming your business. Once you conclude your client, you require to appear at your positioning.

Also, look at what you're dealing with, are your prevalent customers buying high-end or low-end products and services? This data will help you decide if your cost is right, what position of service or eliminations you should be extending, and incipiently if you're targeting the right request. While you may be in business for the affection and to add value to the lives of others, you also necessitate adding valuation to your own.

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For analysis purposes, the high-low method usually produces a(n) a. reasonable estimate. b. precise estimate, C. overstated estimate. d. understated estimate. 16) In applying the high-low method, which months are relevant? Month Miles Total Cost January 80.000 $ 192,000 February 50,000 160.000 March 70,000 188,000 April 90,000 260,000 a. January and February b. January and April c. February and April d. February and March
Previous question
N

Answers

Option A is correct. For analysis purposes, the high-low method usually produces a(n) reasonable estimate.

The high-low method is a way to estimate a cost function by analyzing the relationship between a cost and an activity level. This method is useful when a company has a limited number of data points and wants to quickly estimate a cost function. The high-low method usually produces a reasonable estimate but it may not be as precise as other methods like Regression analysis. The high-low method can be affected by outliers, and it may not account for all variables that could affect the cost. For analysis purposes, the high-low method usually produces a(n) reasonable estimate. The high-low method is a way to estimate a cost function by analyzing the relationship between a cost and an activity level. This method involves identifying the highest and lowest activity levels, and then using the corresponding costs to estimate the cost function.

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The ________ is equal to the square root of the systematic variance divided by the total variance.
A. Covariance
B. Correlation coefficient
C. Standard deviation
D. Reward-to-variability ratio
E. Regression coefficien

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Answer:

Explanation:

The correct answer is D. Reward-to-variability ratio.

The reward-to-variability ratio is a measure of risk-adjusted performance that compares the expected return of an investment to the amount of volatility or risk associated with that return. It is calculated by dividing the square root of the systematic variance (which measures the risk due to the overall market) by the total variance (which measures the total risk of an investment).

Claims for which formal instruments of credit are issued as proof of the debt are _____.
(a) accounts receivable
(b) interest receivable
(c) notes receivable
(d) other receivables.

Answers

The correct response is (c), since notes receivable are bills of exchange, official forms of credit, and they can also be endorsed.

What are Receivable Notes?

Asset accounts are linked to an underlying promissory note, which specifies in writing the payment terms for a purchase between the "payee" (typically a company, sometimes referred to as a creditor) and the "maker" of the note (typically a customer or employee, sometimes referred to as a debtor). Notes receivable are also known as "notes payable." A company can have notes receivable with any other party, including another company, a financial institution, or an individual. They typically arise when a customer requires longer payment terms than the standard billing terms for a sale. Payees charge interest and require a signed promissory note for legal purposes in exchange for agreeing to a slower payment. Another way that notes receivable are created is through employee cash advances in which the employer requires the employee to sign a promissory note.

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Which of the following would be considered an Other Comprehensive Income item? Gainon disposal of discontinued operations Net income Unrealized loss on available for a securities Other revenues and gains

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Gain on disposal of discontinued operations would be considered an Other Comprehensive Income item.

Other Comprehensive Income (OCI) is a separate component of a company's equity that includes certain non-recurring items and changes in the value of certain assets and liabilities that are not included in net income. Examples of items that are commonly included in OCI are:Gains and losses on investments in securities that are classified as available-for-sale. Foreign currency translation adjustments. Unrealized gains and losses on certain derivative instruments.Gains or losses from the remeasurement of certain defined benefit pension plans and other post-employment benefit plans.Reclassification adjustments for certain items that were previously included in OCI but are now reclassified to net income.Gains or losses on the disposal of discontinued operations.Net income, unrealized loss on available for sale securities and Other revenues and gains would be considered as part of the income statement which is different from OCI.

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What is meant by workforce trends?

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Workforce trends refer to the changes in the composition, size, and skills of the workforce over time.

What is Workforce?

Workforce is a term used to describe a company's personnel or employees. It is the collective group of people who are employed by an organization to carry out its business operations. The workforce includes all types of employees, including full-time, part-time, temporary, and seasonal workers. A company's workforce contributes to its success by providing the necessary skills and labor to produce goods and services. The size and composition of a company's workforce can vary depending on its specific needs and goals.

These trends can be driven by a variety of factors, including technological advances, economic conditions, and demographic shifts. They can also be influenced by government policies, such as those related to immigration, labor laws, and education.

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Under U.S. GAAP, liabilities payable within one year can be excluded from current liabilities only if:

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In accordance with U.S. GAAP, commitments that are due within a year can only be excluded from current liabilities if the business has the capacity to refinance them over the long term and has the intention to do so. The right answer is C.

Current liabilities must always be used to describe obligations that mature within a year. They must be transformed into long-term liabilities if a corporation intends to recognise them as obligations that last longer than a year. They would need to refinance the payable on a long-term basis in order to accomplish so. If they are able to refinance as well as intend to, they will be able to convert their payables to long term. This implies that they won't be able to convert this to a long-term payment if they are unable to secure the necessary cash.

Under U.S. GAAP, liabilities payable within one year can be excluded from current liabilities only if: A) The business intends to refinance the obligations on a long-term basis. B) The business has the demonstrated ability to refinance the obligations on a long-term basis. C) Both a and b. D) Liabilities payable within one year always must be classified as current liabilities.

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Year-to-Date Turnover Avg. Head- < 90 Day This Year Last Year Total Shift count 95 A 8 16. 8% 16. 2% 16 17. 5% 11. 1% 14 55 14. 5% 9. 8% 45 4 8. 9% 10. 3% Total 14. 3% 275 42 15 15. 3% Assuming the cost of an associate leaving within 90 days is $3,000, what will be your facility's approximate cost of early turnover for this year? a. 45000 b. 90000 c. 126000 d. 252000

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It is estimated that losing an employee can cost a business 1.5 to double the employee's income. This shows how expensive turnover is.

How do you calculate cost of turnover?

The cost of employee turnover is calculated by multiplying your annual rate by the number of employees lost in that position in a given year, multiplied by 12, and then adding your cost to cover the vacant position, cost to fill the position, cost of onboarding and orientation, and cost of productivity ramp up.

An owner of a firm wants to maintain as little inventory on hand and sell as much of it as they can. The turnover rate, which indicates how frequently a company sells all of its goods, is five, for instance, if the cost of sales each month is Rs. 5,00,000 and you have Rs. 1,000,000 in inventory. You can figure out total turnover, voluntary turnover, and involuntary turnover.

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What were 3 effects of the stock market crash?

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The three effects of the stock market crash are loss of wealth, Bankruptcy, and unemployment.

1) Loss of wealth: The most immediate effect of the stock market crash was the loss of paper wealth experienced by those who had invested in stocks. Many investors lost their entire savings, while others saw the value of their investments drop dramatically.

2) Bankruptcy: As the stock market continued to decline, many businesses that had borrowed money to purchase stocks were unable to repay their loans. This led to a wave of bankruptcies as companies were forced to liquidate their assets to pay back their lenders.

3) Unemployment: As businesses went bankrupt, many workers were laid off and unemployment rates rose dramatically. This had a ripple effect on the economy and caused a decline in consumer spending, further dragging down the economy. The economic downturn caused by the stock market crash led to the Great Depression, devastatingly affecting the global economy.

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John says that his job duties include planning what will be done, organizing and directing workers, and solving problems related to worker productivity. His job can best be described as a:

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John says that his job duties include planning what will be done, organizing, and directing workers, and solving problems related to worker productivity. His job can best be described as a: Manager.

Productiveness is the performance of the production of products or offerings expressed by a few degrees. Measurements of productiveness are regularly expressed as a ratio of an aggregate output to an unmarried input or an aggregate input utilized in a production process, i.e. output in keeping with a unit of input, usually over a particular time period. The most not unusual example is the (mixture) labor productivity degree, one example of that's GDP according to workers.

There are many specific definitions of productiveness (inclusive of those that aren't defined as ratios of output to input) and the choice amongst them depends on the reason for the productivity dimension and/or data availability. the important thing source of difference among diverse productiveness measures is also normally related (immediately or in a roundabout way) to how the outputs and the inputs are aggregated to acquire the sort of ratio-kind measure of productiveness.

Productivity is an essential aspect inside the manufacturing performance of firms and international locations. increasing national productiveness can improve dwelling standards due to the fact more real profits improve humans' potential to purchase items and services, revel in amusement, improve housing and education and contribute to social and environmental applications. A productivity boom can also help businesses to be more profitable.

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With what official government bodies must a real estate brokerage file paperwork regarding the brokerage's use of an assumed name?

Answers

Texas Real Estate Commission and the county clerk in every county where the brokerage does business.

Real property is belongings together with land and the homes on it, at the side of its herbal sources along with crops, minerals or water; immovable property of this nature; an interest vested on this (also) an item of real belongings, (more generally) homes or housing in trendy. In phrases of regulation, real is when it comes to land property and isn't like private assets while property approach the "hobby" someone has in that land assets.

Actual property is different from non-public assets, which aren't completely attached to the land, such as automobiles, boats, rings, fixtures, tools, and the rolling stock of a farm. in the United States, the transfer, owning, or acquisition of actual estate may be through commercial enterprise businesses, individuals, non-profit groups, fiduciaries, or any prison entity as seen within the regulation of each U.S. nation.

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What you give up in the future to make a purchase today?

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When you make a purchase today, you give up the ability to use that money for something else in the future as investment. This is known as the opportunity cost of a decision.

What's better, purchase or investment?

The decision between making a purchase or investing the money depends on the individual's goals and priorities for investment A purchase may provide immediate satisfaction and the  opportunity cost to use the item or service right away. A purchase may not provide long-term financial benefits. Investment money can provide potential long-term financial gains, but it also involves some level of risk. investment money may not provide immediate satisfaction. It is important to consider both short-term and long-term goals when making a decision about whether to make a purchase or  opportunity cost of the money. It's important to weigh the potential benefits and drawbacks of each option. It's recommended to consult with a financial advisor before making any investment decisions.

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Suppose that this year in the state of California, a farmer grows wheat, which she sells to a miller for $25. The miller turns the wheat into flour, which she sells to a baker for $70. The baker turns the wheat into bagels, which she sells to consumers for $100. Consumers eat the bagels. What amount goes into GDP in this economy

Answers

This year, $195 is included in the aforementioned economy's GDP.

Gross domestic product (GDP) measures the market value of all finished products and services produced and sold (not resold) within a nation during a given time period. However, this measurement has undergone numerous revisions before being recognized as a trustworthy indication due to its complicated and subjective nature.

As a result, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between countries, whereas nominal GDP is more useful when comparing national economies on the global market. However, GDP (nominal) per capita does not account for variations in the cost of living and the rate of inflation of the various nations.

All of the monetary values are calculated as GDP for the scenario in the previous question.

Thus, the GDP of the aforementioned economy would be 25 + 70 + 100 = $195.

The GDP of the aforementioned economy this year includes $195.

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When choosing which bidder wins the award of a new competitive bid municipal issue, the deciding factor is the:

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When the winning bidder receives the bonds, they are printed with the interest rate that was offered at the lowest price.

Which one of the following bids is most likely to be chosen for a new municipal issue?

 6% coupon on premiums that are above par. The bid that offers the issuer the lowest total interest cost in a competitive tendering bond auction is the one that wins.

What among the following must be revealed to clients in municipal underwritings with competitive bids?

The gap and selling price of each maturity must be stated in negotiated municipal underwritings. The identity of the underwriters and the amount of their participation shall not be disclosed.

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What are the benefits of scarcity?

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The concept given here is Scarcity. It is a situation in which something is not easy to find or get and has many benefits.

Scarcity is so fundamental in economics that scarce goods are also referred to as economic goods. In economics, scarce goods are goods for which demand would exceed supply at zero price.

Undersupply is important in understanding how goods and services are valued. Rare items like gold, diamonds, or certain types of knowledge are more valuable because they are rare because sellers of these goods and services can charge higher prices.

Undersupply is one of the most important factors affecting supply and demand. The scarcity of goods plays an important role in influencing competition in any price-based market.

Because rare goods tend to be more in demand, they also have higher prices. It can limit consumers' choices.  

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Andre works for a bakery as a cake decorator and receives a base annual salary of $30,000 (paid weekly) as well as piece-rate pay of 25% of the retail price for any wedding cake that he decorates. His piece-rate earnings are totaled on a monthly basis and are paid on the first pay date of the following month. During the month of June, he decorated eight wedding cakes with a total retail value of $2,650. What is Andre's gross pay for the first week in July

Answers

$1,239.42 is Andre's gross pay for the first week in July. The monthly (or annual) gross salary is the amount paid to an employee before any tax deductions.

The pay that is paid  gross pay to an employee on a basic basis is the amount before any benefits like perquisites or allowances are included. Bonuses, overtime pay, allowances, and other benefits are all included in the gross salary. Before taxes, benefits, and other payroll deductions are taken out of an employee's paycheck, that amount is known as their gross pay. Net pay, often known as take-home pay, is the amount that is left after all withholdings have been taken into account.

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the reconciliation of the bank statement is a process of comparing date on a bank statement with records maintained in the medical office

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Reconciliation seems to be a schedule that accounts and for differences between an entity's cash balance on its bank statement and its cash balance on its general ledger. So the given statement is true.

What is meant by reconciliation of the bank statement?A bank reconciliation statement is a summary of all transactions (deposits, withdrawals, fees, and interest) on a company's bank account and their relationship to its financial records.A bank reconciliation statement is used to reconcile the balance of a bank account in the cash book and the final balance on the bank statement.The reconciliation process ensures the accuracy and validity of financial data. A proper reconciliation process also ensures that no unauthorized changes to transactions have occurred during processing.As a result, bank statement reconciliation is the process of comparing dates on a bank statement to records kept in the medical office.

The complete question :

" The reconciliation of the bank statement is a process of comparing date on a bank statement with records maintained in the medical office. State true or false."

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Nominal GDP recently decreased by 2% following contractionary fiscal policy. Meanwhile, the price level decreased by 7%. What is the real GDP growth rate during this period

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During this time, the real GDP has grown by 5%.

What is the gross national product?

The gross domestic product (GDP) is the total monetary or market value of all finished products and services produced within a country's borders during a specific time period (GDP). Because it is a broad indicator of total domestic production, it provides an exhaustive evaluation of the state of the economy in a particular country.

GDP can be computed on a quarterly basis, despite the fact that it is frequently done on an annual basis. For instance, both for the entire year and for each fiscal quarter, the US government estimates annualized GDP. The fact that each piece of information in this report is presented in real terms suggests that it has already been adjusted for price fluctuations and inflation.

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Which workplace trait involves setting realistic goals, evaluating and selecting the right strategy to solve a problem, and allocating the right amount of time to finish a task

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Self management involves setting realistic goals, evaluating and selecting the right strategy to solve a problem, and allocating the right amount of time to finish a task.

The process of outlining your aims and objectives with a specific plan to assist you in achieving the stated goals is known as goal setting. A crucial element in becoming a successful professional is setting goals. Without goals, it could be difficult for you to perform your tasks in an efficient manner. Setting long- and short-term objectives can help you succeed in your work. A short-term objective would be to boost sales in your section by 40%. A long-term objective can be to finish law school or launch your own business.

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Debtors are interested in the number of times interest charges are earned because they want to
a. know what rate of interest the corporation is paying
b. have adequate protection against a potential drop in earnings jeopardizing their interest payments
c. be sure their debt is backed by collateral
d. know the tax effect of lending to a corporation ps.

Answers

Because they want to be adequately protected from a potential decline in earnings threatening their interest payments, debtors are concerned in the frequency of interest charges.

The interest rate is the amount of interest that is calculated as a percentage of the amount lent, deposited, or borrowed and is due each period. The principal, interest rate, frequency of compounding, and length of the loan, deposit, or borrowing are all factors that affect the final amount of interest charged on a sum lent or borrowed. The annual interest rate is the interest rate that is calculated over a year. The interest rate "measures the preference for a dollar of present income over a dollar of future revenue," according to one definition. The borrower is prepared to pay back the loan.

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