The Purpose of Credit Analysis Is To

question 13

Multiple Choice

The purpose of credit analysis is to:

• A)Reconcile the accounts receivable balance
• B)Modify the terms of trade credit
• C)Organize the right side of the balance sheet
• D)Decide whether or not to grant credit to a customer

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Definitions:

Significance Tests

Statistical tests that show how likely it is that a study’s results occurred merely by chance.

Correlation

A measure of how strongly two variables are related to one another.

Relationship Coefficient

A statistical measure that represents the strength and direction of a relationship between two variables.

Meta-analysis

A statistical technique for combining the findings from independent studies to determine the overall trend or effect.