Which of the Following Is not One of the Five

question 49

Multiple Choice

Which of the following is not one of the five Cs of (good) credit?

• A) Character
• B) Collateral
• C) Capital
• D) Capacity.
• E) Communication

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Definitions:

Depreciable Assets

Assets subject to depreciation, which entails allocating the cost of tangible assets over their useful lives to account for wear and tear.

Deferred Tax Liability Balance

An accounting term for taxes that are owed but not yet paid, a result of temporary differences between the tax basis of assets or liabilities and their carrying amount in the financial statements.

IFRS Deferred Tax Assets

Assets recognized in financial statements under International Financial Reporting Standards (IFRS) due to temporary differences that will result in deductible amounts in the future.

Interperiod Tax Allocation

The process of distributing income tax expenses or benefits over different accounting periods because of temporary differences that cause deferred tax amounts.