In the Credit Process, Which of the Following Activities Falls

question 19

Multiple Choice

In the credit process, which of the following activities falls under Credit Review?

• A) Loan committee reviews
• B) Perfecting the security interest
• C) Market research
• D) Review loan documentation
• E) Market research.

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Definitions:

Debit

A financial record that leads to a rise in a company's assets or a reduction in its liabilities on the balance sheet.

Credit

An accounting entry that increases liabilities or equity or decreases an asset or expense.

Prepaid Insurance

An asset account that reflects payments made for insurance coverage periods extending into the future; it is expensed over time as the coverage period lapses.

Normal Balance

Refers to the debit or credit balance that is expected on a specific type of account based on its accounting rule.