In Determining the Creditworthiness of a Customer from Financial Statements

question 25

Multiple Choice

In determining the creditworthiness of a customer from financial statements, the statements can indicate all except which of the following?

• A) Financial strength
• B) Ability to repay credit obligations
• C) Length of time needed to repay on credit
• D) Proposed budgetary expenses for the near future

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Definitions:

Socio-cultural-economic-political Influences

Factors stemming from societal, cultural, economic, and political realms that affect individuals and communities.

Biological Or Genetic

Pertains to the aspects of an organism that are determined by genes and heredity.

Learned Behavior

Behavior that has been acquired through experience or taught, contrasting with behaviors that are instinctual or innate.

Subjective Distress

The personal and individual experience of discomfort, pain, or suffering, which can vary greatly from one person to another and is not always visible to outsiders.