Asked by Grace Gallagher on Jun 15, 2024

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A term lending agreement has an original maturity of more than 1 year with maturities ranging from two to five years being the most common.

Term Lending Agreement

A contractual agreement between a borrower and a lender that stipulates the terms and conditions under which a loan will be advanced and repaid over a specific period.

Original Maturity

The original duration set during the issuance of a financial instrument, such as a bond or loan, indicating the period until the principal is supposed to be paid back.

  • Familiarize with the concepts of fair value measurement, its application in GAAP, and its relevance to financial reporting and analysis.
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Benny SmithJun 19, 2024
Final Answer :
True
Explanation :
A term lending agreement typically has an original maturity of more than 1 year with maturities ranging from two to five years being the most common.