Lenders Monitor Financial Statement Data to Ascertain Whether Borrowers Are

question 41

True/False

Lenders monitor financial statement data to ascertain whether borrowers are adhering to,or violating,loan covenants.

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Definitions:

Lagging Indicators

Metrics that reflect the economy’s historical performance and changes, becoming apparent after an economic activity.

Balanced Scorecard

A strategic planning and management system used to align business activities to the vision and strategy of an organization, enhancing its internal and external communications and monitoring its performance against strategic goals.

Cause-and-Effect Relationships

Connections between events where one or more events cause another event to happen.

Performance Metrics

Quantitative and qualitative measures used to assess how well a company, project, or individual is performing against predetermined goals or standards.