are the criteria the firm uses to screen credit applicants in order to determine which of its customers should be offered credit and how much a. Credit terms b. Credit standards c. Seasonal datings d. Credit extension policies 20. Historically, the yield curve has have been b. d. short-term interest rates upward sloping, lower than downward sloping, higher than upward sloping, higher than level, about equal to 21. The average collection period measures the: number of days between when a typical credit sale is made and when the firm receives the a. payment b. number of days it takes a typical check to "clear" through the banking system number of days beyond the end of the credit period before a typical customer payment is c. received number of days before a typical account becomes delinquent d. Capacity, which is one of the traditional "five Cs" of credit analysis, refers to a. the general economic climate and its effect on the applicant's ability to pay b. the willingness of the applicant to meet its financial obligations c. the financial strength of the applicant (i.e, net worth) d. the ability of an applicant to meet its financial obligations 22. Character, which is one of the traditional "five Cs" of credit analysis, refers to a. the ability of the applicant to meet its financial obligations (i.e., liquidity and cash flow) b. the general economic climate and its effect on the applicant's ability to pay c. the financial strength of the applicant (i.e., net worth) d. the willingness of the applicant to meet it's financial obligations 23. 24. In a lease arrangement, the owner of the property is called the a. lessee b. lessor c. equity trustee d. lender All of the following are attributes of operating leases excepr a. b. 25. lease period normally equals the economic life of the asset lease payments under the initial lease contract are insufficient to recover the full cost of the asset for the lessor cancelable maintenance and insurance normally are responsibility of lessor c. d