Which of the Following Is Not a Qualitative Factor in Credit

question 31

Multiple Choice

Which of the following is not a qualitative factor in credit risk analysis?

• A)Borrower reputation.
• B)Borrower ethnic origin.
• C)Leverage position of the borrower.
• D)The level of interest rates.
• E)Collateral available.

Interpret the impact of specific transactions on the cash flow statement.

Apply concepts related to cash flow from operating activities.

Analyze cash flows from investing activities.

Determine cash flows from financing activities.

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Definitions:

Price-Earnings Ratio

The Price-Earnings Ratio (P/E Ratio) is a financial metric used to evaluate the value of a company's shares, calculated by dividing the current market price of a stock by its earnings per share.

Return On Total Assets

A financial ratio that measures the profitability of a company relative to its total assets.

Year 2

This refers to the second year of a business or financial operation, often used in context to compare data year-over-year.

Earnings Per Share

A company's net profit divided by the number of its outstanding shares, indicating the portion of a company's profit allocated to each share of stock.