When a Creditor Looks at the Borrower's Attitude Toward Credit

question 136

Multiple Choice

When a creditor looks at the borrower's attitude toward credit obligations, which of the 5 Cs of credit is she analyzing?

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

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Definitions:

Adjusting Process

The adjusting process in accounting involves making entries at the end of an accounting period to allocate income and expenses to the period in which they actually occurred.

Accrued Revenues

Revenues earned by a company for goods or services provided but not yet billed or paid for by the customer.

Cash Receipts

The collection of cash during a specific time period, typically from sales or other transactions.

Unearned Revenues

Funds received by a company for goods or services that have not yet been delivered or rendered, considered a liability until the product or service is provided to the customer.