Which of the Following Is Not Likely to Be a Characteristic

question 38

Multiple Choice

Which of the following is not likely to be a characteristic of a numerical credit scoring system?

• A) Is used to prescreen credit applications
• B) Analyzes financial ratios to determine credit
• C) Is less subjective than using individual loan officers
• D) Is most appropriate for consumer loans

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Definitions:

Accumulated Depreciation

The sum of all depreciation expenses allocated for a physical asset from the time it was first utilized.

Depreciation Expense

The systematic write-off of the cost of a tangible asset over its useful life.

Intangibles

Assets that lack physical substance but are nonetheless valuable to a company, such as patents, trademarks, goodwill, and copyrights.

Constructing

The process of building or assembling infrastructure, buildings, or other substantial physical structures.