The Most Subjective and Also Significant Segment of the 5

question 80

Multiple Choice

The most subjective and also significant segment of the 5 Cs of credit for giving final approval is

• A) capacity.
• B) collateral.
• C) character.
• D) conditions.

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Definitions:

U.S. GAAP

United States Generally Accepted Accounting Principles, a framework of accounting standards, principles, and procedures used in the U.S. for financial reporting.

Earnings Per Share

A measure of a company's profitability, calculated as its net income divided by the total number of outstanding shares.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period.

Extraordinary Gains

Profits from events or transactions that are both unusual in nature and infrequent in occurrence, though this distinction has been eliminated in current accounting practices.