To Assess a Person's Credit Worthiness Which of the Following

question 24

Multiple Choice

To assess a person's credit worthiness which of the following can be used?

• A)Check for bad debt history.
• B)Obtain full personal and business details.
• C)Ask for trade references.
• D)All of the above.

---

Definitions:

Impairment Losses

Monetary losses identified when the book value of an asset is higher than its salvageable value.

Fair Value

An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties.

Accelerated Depreciation

A depreciation method that allows a larger depreciation deduction in the early years of an asset's life and smaller deductions in the later years.

Straight-Line Method

An accounting method that allocates an equal portion of the cost of an asset over its useful life for the purposes of depreciation.