The key dimension of credit selection which analyzes an applicant’s ability to repay the requested credit focused on cash flows available is ________. A) collateral B) capital C) conditions D) capacity ANSWER D
Date: September 19th, 2020
Which of the following is true of credit scoring? A) It audits the amount of assets the applicant has available for use in securing the credit. B) It specifies the terms of sale for customers who have been extended credit by a firm. C) It is an ongoing review of a firm’s accounts receivable to […]
Date: September 19th, 2020
________ are established to evaluate a customer’s creditworthiness and to determine the minimum requirements for extending credit to a customer. A) Lines of credit B) Credit limits C) Collection agencies D) Credit standards ANSWER D
Date: September 19th, 2020
The key dimension of credit selection which analyzes the amount of assets an applicant has available for use in securing the credit is ________. A) capital B) collateral C) capacity D) conditions ANSWER B
Date: September 19th, 2020
Which of the following is one of the five C’s of credit? A) coordination B) cost C) character D) control ANSWER C
Date: September 19th, 2020
A credit applicant’s ________ reflects its ability to repay the requested credit. A) character B) capacity C) capital D) collateral ANSWER B
Date: September 19th, 2020
As credit standards are relaxed, sales are expected to increase and the investment in accounts receivable is expected to decrease. Indicate whether the statement is true or false ANSWER FALSE
Date: September 19th, 2020
A credit applicant’s ________ is his or her financial strength as reflected by his or her ownership position. A) character B) capacity C) capital D) collateral ANSWER C
Date: September 19th, 2020
The turnover of accounts receivable can be calculated by dividing 365 days by average collection period. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
A credit applicant’s ________ reflects his or her record of meeting past obligations. A) condition B) capacity C) control D) character ANSWER D
Date: September 19th, 2020
