Which of the following are frequently used as sources of information when trying to ascertain the creditworthiness of a customer?

Which of the following are frequently used as sources of information when trying to ascertain the creditworthiness of a customer? I. payment history with similar firms II. credit reports III. financial statements IV. information provided by a bank    A.  I and III only B.  II and IV only C.  I and II only D.  I, II, and III only E.  I, II, III, and IV Refer to section 20.5

42.

When evaluating the creditworthiness of a customer, the term character refers to the:    A.  nature of the cash flows of the customer's business. B.  customer's financial resources. C.  types of assets the customer wants to pledge as collateral. D.  customer's willingness to pay bills in a timely fashion. E.  nature of the customer's line of work. Refer to section 20.5

43.	Which one of the five Cs of credit refers to a firm's financial reserves?    A.  character B.  capacity C.  collateral D.  conditions E.  capital Refer to section 20.5

44.	Which one of the five Cs of credit refers to the general economic situation in the customer's line of business?    A.  capacity B.  character C.  conditions D.  capital E.  collateral Refer to section 20.5

45.

Which one of the following statements is correct?    A.  An aging schedule helps identify those customers who are the most delinquent. B.  The percentage of total receivables that falls within a certain time period on an aging schedule will remain constant over time even if the firm has seasonal sales. C.  Normally firms call their delinquent customers prior to sending them a past due letter. D.  A constant average collection period over a period of time is cause for concern. E.  It is common practice when a customer files for bankruptcy to sell that customer's receivable at face value. Refer to section 20.6