CORRECTING ENTRY Definition

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CORRECTING ENTRY, a type of ADJUSTING ENTRY, is required at the end of an accounting period if a mistake was made in the accounting records during the period. See REVERSING ENTRY.

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4 Cs OF CREDIT are the four primary considerations that will affect a lenders decision to approve or decline your loan application. Known as the 4 C's of credit:

  1. Capacity - what is your ability to repay the loan? Do you have a job or another income source? Do you have other debts?
  2. Character - will you repay the loan? Have you used credit before? Do you pay your bills on time?
  3. Collateral - if you fail to repay your loan, is there something of value that you agree to forfeit? For example, if you are buying your first car, it could be used as collateral to insure that you will repay the loan. If you default, you lose your car.
  4. Capital (accumulation) - what are you worth? Do you have other assets, such as a savings account, car, or certificate of deposit that could be used to repay the debt?

IMPLIED DIVIDEND RATE is the basis for calculating yields on adjustable-rate preferreds; assumes that the dividend rate will remain the same as the index rate for all future dividends.

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