What are industry benchmarks, and why are they used in the credit evaluation process?

Q: What is a sensible credit period? Should the credit period for your company's sales vary depending…

A: Credit period is the days that a customer is allowed to wait before paying the invoice. There is no…

Q: What do I need to do to build a solid credit history and how can I maintain it?

A: credit score history is a method to judge a customer's capability of paying his credit amount taken…

Q: Could you explain the relationship between money, credit, and financial firms? Explain

A: A financial institution (FI) is a firm that deals with financial and monetary transactions such…

Q: what makes credit important to the business?

A: Credit can be the amount of money a business can borrow or can be termed as the ability of that…

Q: What is the impact of the credit and collection functions on the other parts of a business (or on…

A: Credit refers to the debt and loan that is provided by the company to others at a certain rate of…

Q: do we need to check   the credit worthiness of credit customers before granting their credit…

A: Giving credit to the business and customers is main earning sources for banks but they need to take…

Q: What is the net credit sales?

A: As per the information given,  Net credit sale = Closing balance of Trade and other receivables -…

Q: The control procedure “credit sales approved by credit department” is directed toward which…

A: Existence assertion relates to asserting if the transaction has actually taken place. Completeness…

Q: What are the advantages and disadvantages of implementing credit scoring within a financial…

A: The credit scoring is calculated by checking the payment history of an individual, credit mix,…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: a) How a company handles its credit accounts, including methods of invoicing and collecting past-due…

Q: xplain the importance of maintaining good credit rating

A: Credit refers to the ability of an individual or an entity to borrow money from some other…

Q: Find an Example of a Commercial credit policy from the internet and highlight thei important parts…

A: The commercial credit, often known as the business credit sheet, corresponds to a sum of the…

Q: Give an example of consumer credit and explain the process how it is processed from application to…

A: The customer is allowed to ask for credit in case of no availability of funds. The suppliers provide…

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: Explain what important information we can get from each sources of credit information to be able to…

A: Financial organizations seek to reduce the risk of supplying to borrowers by completing a credit…

Q: scuss the process of auditing the following: • Revenue • Receivables • Expected Credit Lo

A: An audit, for example, is a type of on-site verification, similar to an inspection or examination,…

Q: What are the quality information with regards to financial reporting?

A: Financial reporting is to communicate the financial position and its soundness to the shareholders,…

Q: Which of the following pairs of financial statement analysis tool will be given more emphasis by a…

A: Trade credit and sale on account to new customers relates to short term Liquidity.  If short term…

Q: What is the difference between your credit report and your credit score? What is a good credit…

A: Introduction to Credit report A credit report is prepared by a credit bureau and is a breakdown of a…

Q: Describe about the trade credit procedure.

A: Trade: Trade refers to buying or selling goods and service in exchange of money or money’s worth.

Q: Define Credit analysis

A: Credit analysis is the method by which the creditworthiness of a business or organization is…

Q: How can you have a good credit history?

A: Good credit history can be maintained by complying with the terms and conditions and ensuring that…

Q: Define Receivable Management and Credit Policies

A: Receivable Management : managing the outstanding   Credit Policies  : Selling on credit to parties…

Q: Discuss how the three primary credit bureaus (Equifax, Experian & TransUnion) differ in credit…

A: Hey, since there are multiple questions posted, we will answer the first question. If you want any…

Q: What are the key variables that influence a company’s investment in receivables? Describe the two…

A: The key variables that influence a company's investment in receivables are as follows:   To include…

Q: Working with a company that is able to pay its bills is important. The Balance Sheet is a great…

A: Balance sheet is a financial statement, which presents the balances of assets, liabilities, and…

Q: Credit selection involves the application of techniques to determine which customers should receive…

A: Credit selection refers to the decision to whether the company should extend the period or the…

Q: what are the principal types of credit scoring models.

A: Credit score is referred as a number range from 300 to 850 which determines the creditworthiness of…

Q: What are the five Cs of credit? How do these serve as a yardstick for creditevaluation?

A: The “5 Cs of credit” is a system used to estimate the creditworthiness of the borrowers. The 5 Cs…

Q: Describe the nature of the basic services of financial institutions.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: How credit ratings companies evaluate and determine credit for consumers?

A: Credit rating is referred as the opinion derived from the credit agency which determines the ability…

Q: why is it important for finance student to understand credit and collection management and its steps…

A: Financial management is a study and methods to manage the inflow and outflow of funds of a company.…

Q: Discuss how the three primary credit bureaus (Equifax, Experian & TransUnion) differ in credit…

A: (a) THE BIG THREE CREDIT BUREAUS- In the U.S. there area unit many totally different credit bureaus,…

Q: When a company decides to extend credit to consumers, it is making an investment decision in: a.…

A: A company often decides to extend credit to consumers. The decision is made on the logic that credit…

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: is purchashing something on credit an operating activity or a financial activity

A: Assuming that purchase of something as the purchase of inventory.

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Accounts receivable: When the seller sold the goods to the buyer on a credit basis of the specified…

Q: What does an increasing collection period for accounts receivable suggest about a firm's credit…

A: The credit policy of a firm means the policies and conditions attached to lending goods and services…