Which One of the Following Best Defines the Term Credit

question 36

Multiple Choice

Which one of the following best defines the term credit scoring?

• A)Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases
• B)Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding
• C)Evaluating the opportunity costs of a credit policy
• D)Process of quantifying the probability of default when granting credit to customers
• E)Tracking of both the number and the size of customer orders over a period of time

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Definitions:

Delivered

The act of bringing something to a destination or achieving a desired result, especially as promised or expected.

Schedule

A plan that lists times at which specific events are intended to occur, often used to organize work, meetings, or travel.

Plan

A detailed proposal for doing or achieving something, typically involving the setting of goals, defining of steps, and allocation of resources.

Financially Rewards

Monetary or fiscal incentives provided to individuals or employees as recognition for their work or achievements.