One of the Key Inputs to the Final Credit Decision

question 8

True/False

One of the key inputs to the final credit decision is the credit analyst's subjective judgement of a firm's creditworthiness since it can provide a better feel of a firm's operation than any quantitative figures.

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Definitions:

Payroll Tax Expense

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Inventory

The goods and materials a business holds for the purpose of resale or production.

Freight-in

The cost of transporting goods into a firm, usually considered part of the inventory cost.

Cost of Selling Goods

The total expense directly incurred from the production or purchase of items sold by a business.