Enumerate the three (3) common credit policies

Q: What three factors influence the dollar amount reportedfor liabilities?

A: Balance sheet have the dollar amount of liabilities, equity and assets of an entity. Liabilities are…

Q: List and explain the differences between a self managed credit plan and a contracted credit plan.

A: A credit is a type of loan taken by individuals or corporations in which the borrowers borrow an…

Q: What are the five C's of credit?

A: BANKS use 5 c's to quantify and decide whether the applicant is eligible to give loan.

Q: Define credit terms

A: Credit refers to the amount of money which is lend to the borrower for certain period of time.

Q: Explain an example how to calculate debt ratio.

A: Debt Ratio: Debt ratio is the percentage of assets of the company that are procured or financed…

Q: What is a line of credit? Give three examples?

A: Line of credit is the borrowing limit available to a customer by the bank. The customer can borrow…

Q: Compare and contrast the lenders financial ratios and for what purpose they use the ratios

A: Financial ratios refer to the relative magnitude of the selected values measured in numerical that…

Q: Describe some ways to manage credit risk at a nonfinancialcompany

A: Evaluation of the customer prior to granting credit. Nonfinancial Company does self-evaluation or…

Q: Describe the procedure for evaluating a change in credit policyusing the income statement approach.

A: Credit policy: The detailed guidelines of the credit extended to the company which includes factors…

Q: Define credit standards

A: The set of standards that a firm or bank uses to choose if an advance or credit line is to be…

Q: Credit scoring is the:

A: Credit scoring: It is a statistical analysis done by financial institutions and lenders to decide a…

Q: Institutions

A: Financial institutions are those institutions who play the key role of transferring funds from those…

Q: The problems of credit extension and give examples and illustrations

A: The term credit extension refers to the process of making and renewing the loan, letter of credit,…

Q: What is off-balance-sheet financing, what is ASC 840, what is ASC 842, and how arethe three related?

A: The off-balance-sheet financing is a method of accounting in which the transaction related to…

Q: Explain the following Credit Terms: 4/21, n/30.

A: The invoice includes all the terms related to payment due from the customer.

Q: What are the four elements of a credit policy? Briefly explain.

A: Following are the four elements of a credit policy: Credit standards: Consider potential clients by…

Q: When a lender looks at your FICO credit score to decide whether to lend to you, which of the “Five…

A: The five Cs of credit is a system used by lenders to get the creditworthiness of borrower

Q: For short term credit decisions which ratio is used? Select one: O a. Current Ratio O b. None O c.…

A: Explanation: Short term credit decision are made by the company are related to the financing needs…

Q: Finance consists of three interrelated areas. List and explain them.

A: Finance is the process of channeling money and investments from savers and investors in the economy…

Q: Explain three purposes or objectives of Financial Analysis.

A: The financial statement analysis refers to the analysis of all the financial statements of the…

Q: Which of the following is considered to be a good debt? Select one or more: a. credit card debt b.…

A: Good debt is the debt which has lowest effective interest rate.

Q: What are three components used by a lender in determining the interestrate charged for a loan?

A: The three components used by a lender in determining the interest rate charged for a loan are as…

Q: Which are the fundamental relationships to know in any loan refinancing decision include at least…

A: Loan refinancing decision involves replacement of an existing debt with a new debt. The intention of…

Q: Define the characteristics of Notes Payable?

A: A notes payable is described as the written promissory notes. By issuing notes payable, the debtor…

Q: Discuss creditworthiness and its relation to the 5 C's of credit.

A: Creditworthiness is the evaluation of one company by another company to determine whether the…

Q: explain the five (5) Cs of Credit.

A: The five (5) Cs credit method is the method used to assess the credit worthiness of the borrower…

Q: Define credit period

A: The purchase and sales transactions are in the form of cash or credit. If the payment is made at the…

Q: 9. Documents of credit appraisal for invididual loan?

A: Credit appraisal is the process of assessing the credit worthiness of the loan applicant.

Q: definition and the use/s of SWOT Analysis

A: Since you have posted multiple sub-part questions, we will solve the first question for you. To get…

Q: Distinguish between financial and nonfinancial transactions. Give three examples of each.

A: Transaction: The economic events which bring about any changes in the financial items of a business…

Q: Define embedded rate (for debt)

A: An embedded option is the component of financial security the gives the issuer of the debt option or…

Q: What is the calculation for the debt ratio? Explain what the debt ratio evaluates?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: Distinguish between (3) money and capitalmarkets

A: Money market & capital markets are the two types of financial markets. Money markets generally…

Q: What are the four elements of a firm's credit policy?

A: 4 element of the firm’s credit policy are: Credit period The length of the time buyers that are…

Q: describe in detail credit unions

A: Financial institutions: A corporation engaged in the business of handling financial and monetary…

Q: "Provide at least one (1) example of each of the three (3) common credit policies."

A: A credit policy comprises standards that regulate the amount of credit extended to consumers as well…

Q: What elements do each of the loans have in common?

A: LOAN -      A loan could be a sort of debt incurred by a personal or different entity. The…

Q: Internal sources of credit information t

A: Second option is wrong because financial statements are published and can be used as an external…

Measuring Your Credit Capacity

Credit capacity means determining one’s ability to manage credit. The credit capacity of the individual or an organization is measured based on the details of the earnings, expenses, and previous debts. Credit capacity valuation is crucially required in obtaining huge debt obligations from a lender such as housing loans, car loans, and business loans.