Question

Net loan proceeds are a .

1. Credit to the buyer and a debit to the broker
2. Not entered on the worksheet.
3. Single-entry debit to the broker
4. Single-entry credit to the broker

Answer 1

Net loan proceeds are a single-entry credit to the broker.

Step-by-step explanation:

Net loan proceeds are a single-entry credit to the broker. When a bank lends money to a borrower, it records the loan as an asset on its balance sheet. However, the actual loan amount is not given to the borrower in cash. Instead, the bank issues a cashier's check or transfers the funds to the borrower's account. In this case, the net loan proceeds refer to the amount of money that the borrower receives after deducting any fees or charges.