Which of the Five Cs of Credit Would Your Actual

question 143

Multiple Choice

Which of the five Cs of credit would your actual home be in relation to your mortgage?

• A)Character
• B)Capacity
• C)Collateral
• D)Capital
• E)Conditions

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Definitions:

Direct Method

A technique used in cash flow statements to show actual cash inflows and outflows from operating activities, as opposed to the indirect method.

Accounts Receivable

The funds that a company's customers have yet to pay for products or services they have received but have not settled the bill for.

Sales Revenue

Income received from selling goods and services over a period of time.

Operating Activities

Encompasses the primary revenue-generating activities of an entity, including production, sales, and delivery of the company's products and services.