Which of the Following Are Potential Problems Associated with Using

question 28

Multiple Choice

Which of the following are potential problems associated with using credit scoring as a tool for assessing country risk?

• A) Measurement of key variables.
• B) Political risk factors and incentive aspects.
• C) Political risk factors and portfolio aspects.
• D) Measurement of key variables, political risk factors, portfolio aspects and incentive aspects.

---

Definitions:

Owner's Equity

The residual interest in the assets of the entity after deducting liabilities, representing the ownership's claim on the company assets.

Debit

An accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet.

Double-Entry Accounting

A system of bookkeeping where every entry to an account requires a corresponding and opposite entry to a different account.

Debits

Accounting entries that represent an increase in assets or expenses or a decrease in liabilities, equity, or revenue.