When Analyzing the Financial Statements of a Business,a Credit Analyst

question 88

Multiple Choice

When analyzing the financial statements of a business,a credit analyst will look for ratios in which of the following categories?

• A)Profitability
• B)Coverage
• C)Operating efficiency
• D)Liquidity
• E)All are categories of ratios that bankers will look for.

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Definitions:

BI Systems

Business Intelligence Systems; these are information systems that combine data gathering, data storage, and knowledge management with analysis to provide input to the decision process.

Computer-Based Support

Systems or software designed to aid or enhance computing tasks, problem-solving, or decision making.

Lower-Level Managers

Managers who are responsible for the routine, day-to-day operations within a company, typically overseeing the work of regular employees.

Intraorganizational System

A system used within an organization to streamline processes, enhance communication, and facilitate decision-making among different departments.