Assume that RSF is a wholly-owned subsidiary of the Rolled Steel Company. RSF provides credit financing solely

Assume that RSF is a wholly-owned subsidiary of the Rolled Steel Company. RSF provides credit financing solely for large ticket items purchased from the Rolled Steel Company. Which one of the following terms describes RSF?    A.  credit department B.  parent company C.  captive finance company D.  credit union E.  service unit Refer to section 20.4

10.

The basic factors to be evaluated in the credit evaluation process, the five Cs of credit, are:    A.  conditions, control, cessation, capital, and capacity. B.  conditions, character, capital, control, and capacity. C.  capital, collateral, control, character, and capacity. D.  character, capacity, control, cessation, and collateral. E.  character, capacity, capital, collateral, and conditions. Refer to section 20.5

11.

Roger's Home Appliances offers credit to customers it deems worthy of this privilege. To determine if a customer is worthy, the firm computes a numerical value which is used to estimate the probability that the customer will default if credit is granted to them. The process of computing this numerical value is referred to as:    A.  credit scoring. B.  credit capacity. C.  receipts assessment. D.  conditions for credit. E.  consumer analysis. Refer to section 20.5

12.

You have recently been hired as an accounting intern for Jefferson Mills. The job that you have been assigned for today is to compile a spreadsheet that has six columns. The column headings are: Invoice #; Customer name; < 30 days; 31-60 days; 61-90 days; > 90 days. You are to list every unpaid invoice by customer name with the amount owed entered into the appropriate column for the number of days between the sale date and today. Once you have completed that, you are to sort the report by customer name and then total the amounts listed in each column. What is this report called?    A.  credit report B.  aging schedule C.  risk assessment report D.  turnover delineation E.  receivables consolidation report Refer to section 20.6