Hi please answer all of them as im prepping my exam, i jsut want to make sure i myself got them right as well, THANK YOU!!!

When conducting an annual credit review, which components of the financial statement review are typically looked at? Select all that apply. Decision making abilities Working capital analysis Internal management analysis Comparative analysis Match the following warning signs to the methods of assessing them. Review Later Decreasing sales volume A. Look for changes in the current ratio or quick ratio Increased leverage/gearing B. Look for sales volumes after adjusting for inflation Decreased liquidity C. Look for changes in operating profits and profit margins D. Look for increases in debt funding Declining profitability What is not an example of an inadequate financial control? Absence of cash flow forecasts, costing systems and budgetary control Inappropriate cost and overhead allocations Poorly used management reporting systems Limits on how much management can spend on discretionary purchases What are the four characteristics of best practice early warning signals used to monitor corporate clients? Client specific, measurable, monitorable, trigger action Monitorable, trigger action, measurable, employee specific Employee specific, measurable, monitorable, communication Client specific, monitorable, trigger action, time sensitive What is not a characteristic of the Altman's Z-score model? It measures divergence It assesses the cash flow of the company It can be applied to all types of business It uses financial ratios Calculate the Z-score (original version) using the following information: Working capital = 150 Retained earnings = 20 EBIT = 40 Sales = 350 Total Assets = 1000 X4 = 1.2 1.84062 2.20965 1.40965 O 1.38012 What bond rating can we expect for a company with a Z-score (original version) of 2.450 to have? BB BBB B Can default risk be estimated using principles of option theory? No Yes Which is not one of the three stages used to calculate expected default frequency (EDF)? Calculate the market value and volatility of the firm's shares The default point-based on the firm's liabilities The expected value of the firm (based on current firm value and volatility) Calculate the growth of competitors What is the formula used to determine the most frequent default point? Default chance = non-current liabilities + (0.5 x long-term liabilities) Default rate = current liabilities + (0.5 x current liabilities) Value of firm = current liabilities + (0.5 x long-term liabilities) O Value of firm = non-current liabilities + (0.5 x current liabilities)