Credit-Rating Agencies Do Which of the Following

question 65

Multiple Choice

Credit-rating agencies do which of the following?

• A)evaluate a borrower's probability of default
• B)assign the borrower to a particular risk class
• C)help lenders determine the credit worthiness of a borrower
• D)All of the above are correct.

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Definitions:

Raw Materials Purchases

The acquisition of materials that are directly used in the manufacturing of products.

Production Needs

The specific requirements for manufacturing including materials, labor, and overhead to meet demand.

Master Budget

An all-encompassing financial plan for a company, consolidating all its individual budgets related to sales, cost of goods sold, operating expenses, assets, liabilities, and cash flows.

Direct Labor

The wages and related expenses for workers who are directly involved in the production of goods.