The following ratios cannot be viewed by themselves as either positive or negative.
Select one:
a. Return on sales and return on equity
b. Return on assets and return on sales
c. Return on sales and accounts payable turnover in days
d. Return on assets and return on equity
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Answer:
, D) Return on assets and return on equity
Credit professionals may use a wide variety of non-traditional data sources to
evaluate credit. These include all of the following except for:
Select one:
a. Social media
b. Proprietary spreadsheets
c. Internet searches
d. Industry-specific online sources
Give this one a try later!
Answer:
B) Proprietary spreadsheets
In the context of credit enhancements, what are some of the potential benefits of
shortening the approval term? Select all that apply
Select one or more:
a. Assists in increasing the lessee's operating cash and reduces the risk of default
b. Recovery of money lent is much quicker
c. Reduces pressure on the lessee's cash flow
d. It typically generates a quicker improved equity position in the equipment for the
lessor
Give this one a try later!
, Answer:
B) Recovery of money lent is much quicker
D) It typically generates a quicker improved equity position in the
equipment for the lessor
Traditional cash flow analysis is the evaluation process to determine if the company
can pay for the new equipment acquisition out of historic profits plus non-cash
expenses. This calculation concentrates on the ________________ of the company.
Select one:
a. Statement of cash flows
b. Income statement
c. Balance sheet
d. Reconciliation of shareholder equity
Give this one a try later!
Answer:
B) Income Statement
Originally implemented in response to a shortage of trained labor, the value of credit
scoring today may be summarized as follows: Select all that apply
Select one or more:
a. Cheaper
b. More accurate
c. Quicker
d. More objective
Give this one a try later!
Select one:
a. Return on sales and return on equity
b. Return on assets and return on sales
c. Return on sales and accounts payable turnover in days
d. Return on assets and return on equity
Give this one a try later!
Answer:
, D) Return on assets and return on equity
Credit professionals may use a wide variety of non-traditional data sources to
evaluate credit. These include all of the following except for:
Select one:
a. Social media
b. Proprietary spreadsheets
c. Internet searches
d. Industry-specific online sources
Give this one a try later!
Answer:
B) Proprietary spreadsheets
In the context of credit enhancements, what are some of the potential benefits of
shortening the approval term? Select all that apply
Select one or more:
a. Assists in increasing the lessee's operating cash and reduces the risk of default
b. Recovery of money lent is much quicker
c. Reduces pressure on the lessee's cash flow
d. It typically generates a quicker improved equity position in the equipment for the
lessor
Give this one a try later!
, Answer:
B) Recovery of money lent is much quicker
D) It typically generates a quicker improved equity position in the
equipment for the lessor
Traditional cash flow analysis is the evaluation process to determine if the company
can pay for the new equipment acquisition out of historic profits plus non-cash
expenses. This calculation concentrates on the ________________ of the company.
Select one:
a. Statement of cash flows
b. Income statement
c. Balance sheet
d. Reconciliation of shareholder equity
Give this one a try later!
Answer:
B) Income Statement
Originally implemented in response to a shortage of trained labor, the value of credit
scoring today may be summarized as follows: Select all that apply
Select one or more:
a. Cheaper
b. More accurate
c. Quicker
d. More objective
Give this one a try later!
