Which of the Following Duties Should NOT Be Performed by a Credit

question 86

Multiple Choice

Which of the following duties should NOT be performed by a credit department?

• A) Monitor customer payment records.
• B) Handle cash receipts.
• C) Evaluate customers who apply for credit.
• D) Review applicant's income and credit history.

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company using its assets to generate sales or revenue.

Earnings Per Share

A financial ratio indicating the portion of a company's profit allocated to each outstanding share of common stock, serving as an indicator of the company's profitability.

Net Income

is the profit a company makes after deducting all costs and expenses from its total revenue, including taxes and interest.

Interest Expense

The cost incurred by an entity for borrowed funds, which can include payments on loans, bonds, or lines of credit.