Borrowing Costs Quiz
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Questions and Answers

What is included in borrowing costs?

  • Interest on bank overdrafts and borrowings (correct)
  • Interest on savings accounts
  • Interest on personal loans
  • Interest on credit cards
  • What types of borrowings are included in borrowing costs?

  • Mortgages only
  • Short term and long term borrowings (correct)
  • Credit card debt only
  • Personal loans only
  • What are finance charges related to in borrowing costs?

  • Assets purchased outright
  • Assets acquired through a loan
  • Assets acquired under finance leases or under any other similar arrangement (correct)
  • Assets acquired through a lease agreement
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