The Information in Your Credit Report Is Primarily Used by the Credit

question 45

Multiple Choice

The information in your credit report is primarily used by the credit bureau to compute your:

• A) debt to equity ratio.
• B) FICO credit score.
• C) debt payment to income ratio.
• D) liquidity ratio.
• E) long term capitalization ratio.

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Definitions:

Section 11

A provision in the 1933 Securities Act that holds issuers liable for registration statement misrepresentations or omissions of material facts to investors.

Untrue Material Fact

Incorrect or misleading information that is substantial and significant enough to influence a decision-maker's action, particularly in contexts like securities transactions.

Registration Statement

A set of documents filed with the Securities and Exchange Commission that includes material information about a company planning an initial public offering of its securities.

Reasonably Competent Accountant

Refers to an accountant who possesses the average level of skill and knowledge expected of a professional in the accounting field.