Differences Between When a Company Records a Transaction and When

question 46

True/False

Differences between when a company records a transaction and when the bank records the same transaction are called "timing" differences.

---

Definitions:

Credit Risks

This is the risk that a borrower will default on any type of debt by failing to make required payments, impacting lenders and investors.

Credit Analysis

The process of evaluating an applicant's loan request or a corporation's debt issue in order to determine the likelihood of the borrower repaying the loan.

Financial Statement

A written report which quantitatively describes the financial health of a company.

Commercial Paper

An unsecured, short-term debt instrument issued by a company, typically for the financing of accounts receivable, inventories and meeting short-term liabilities.