Which of the following is true of a credit applicant's character? a. It reflects any unique conditions surrounding a credit applicant's transaction. b. It reflects the level of liquid assets available with a credit applicant. c. reflects a credit applicant's past payment history. d. It reflects a credit applicant's ability to repay his debt obligation.

Which of the following is true of a credit applicant's character? a. It reflects any unique conditions surrounding a credit applicant's transaction. b. It reflects the level of liquid assets available with a credit applicant. c. reflects a credit applicant's past payment history. d. It reflects a credit applicant's ability to repay his debt obligation.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter18: The Management Of Accounts Receivable And Inventories

Section: Chapter Questions

Problem 7QTD

See similar textbooks

Similar questions

How do you think the information stated in the credit report and credit score are sufficient enough to know the credit standing of the borrower?
Which of the following is not use to assess whether credit should be extended to a household? a. The amount of income earned. b. The amount of debt outstanding. c. The history of timely repayments of debt owed. d. Whether the loan is secured by an asset. e. All of the above are used to assess credit.
For a creditor; how is a loan impairment recorded?
: Provide example of accounting treatment for transactions related to loan in two situations as following Personal loan Personal guarantees The accounting treatment include the payment of the loan and return the loan to the bank , interest rate , commission
The journal entry to record the sale of services on credit should include:(a) Debit to debtors and credit to capital.(b) Debit to cash and Credit to debtors.(c) Debit to fees income and Credit to debtors.(d) Debit to debtors and Credit to fees income.
why loan officer prefer accrual basis accounting
Explain the following terms: credit transfer, dishonoured cheque, standing orderand give examples, the purposes, advantages and disadvantages
What is accounting? What is the distinction between debtor and creditor? What is a contingent liability? What is principles of accounting?
What is interest earned by a lender but not yet collected? As well as what is interest earned by a lender, whether collected or not? Please explain.
A(n) _________ is a lender, seller, or any other person in whose favor there is a security interest. a. unsecured creditor b. general creditor c. consumer creditor d. secured creditor
Which of the following pieces of information would you not expect a potential credit customer to provide in a credit application form? A.The name of their spouse and their spouse's personal bank account details B.the name of their bank C.a list of other debts D.a list of assets
Which of the following is true when accounts receivable are factored without recourse? a. The transaction may be accounted for either as a secured borrowing or as a sale, depending upon the substance of the transaction. b. The financing cost (interest expense) should be recognized ratably over the collection period of the receivables. c. The receivables are used as collateral for a promissory note issued to the factor by the owner of the receivables. d. The factor assumes the risk of collectibility and absorbs any credit losses in collecting the receivables.