When a Creditor Looks at the Borrower's Attitude Toward Credit

question 136

Multiple Choice

When a creditor looks at the borrower's attitude toward credit obligations, which of the 5 Cs of credit is she analyzing?

• A)Capacity
• B)Capital
• C)Character
• D)Collateral
• E)Conditions

Explain the concept and utility of subsidiary ledgers and controlling accounts.

Differentiate between the general ledger and special journals.

Comprehend the process and significance of recording transactions in special and general journals.

Recognize the adaptations of an accounting system to meet specific business needs, including sales taxes and enterprise resource planning (ERP).

---

Definitions:

Memorability

The quality of being easily remembered or recalled.

Encoding Specificity

The principle that memory retrieval is more effective when the cues present at the time of encoding are also present at retrieval.

Memorability

The quality of being easy to remember due to being notable or remarkable.

Context-Dependent Learning

Context-dependent learning is the phenomenon where the context in which information is learned affects the ability to recall that information.