Your Credit Rating Is Based On

question 53

Multiple Choice

Your credit rating is based on:

• A) The value of your home equity.
• B) Your employment income only.
• C) Your prior history in borrowing and repaying money.
• D) Your overall debt load, compared to your ability to generate income.

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Definitions:

Expenses

Costs that a business incurs through its operations to generate revenue, including costs of goods sold, rent, utilities, and salaries.

Profit & Loss Statement

A financial report that summarizes the revenues, costs, and expenses incurred during a specific period, typically used to assess a company's financial performance.

Income

The financial gain received by an individual or a business, often obtained from a job, business operations, or investments.

Expenses

Costs incurred by a business in the process of earning revenue, such as salaries, rent, and utilities.