This type of business credit is the most widely used form of domestic credit.

Select one:

a. Unsecured

b. Secured

c. Investment

d. Prepayment

Which of these factors can determine the extent of a credit investigation?

Select one:

a. Length of the business relationship with the customer

b. The dollar amount of the order

c. The profit potential of a product

d. All of the above

Which of the following is not an advantage of a centralized credit operation:

Select one:

a. Improved customer rapport

b. Maximum control of credit decisions

c. More consistent credit policy implementation

d. More consistent credit policy interpretation

An analysis of ____________ can provide an objective appraisal of a customers ability to pay debt when it becomes due.

Select one:

a. Character

b. Capacity

c. Conditions

d. Collateral

Why is the amount of debt in a companys capital structure important to the financial analyst?

Select one:

a. Debt implies risk

b. Debt is less costly than equity

c. Equity is riskier than debt

d. Debt is equal to total assets

Publicly-traded companies use accounting to prepare published financial statements of their operations.

Select one:

a. Cash

b. Credit

c. Accrual

d. Debit

A corporate annual report contains the following financial statements:

Select one:

a. Balance sheet, income statement, statement of cash flows, and statement of assets.

b. Balance sheet, footnotes, income statement, and statement of retained earnings.

c. Balance sheet, income statement, presidents letter, and statement of cash flows.

d. Balance sheet, income statement, statement of cash flows and statement of retained earnings.