Credit Policy Analysis: One-Shot & Accounts Receivables Approaches

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

The chance that a borrower won't repay his or her debt is _____ risk.

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1. Which approach looks at credit as a one-time investment from a company?

2. Which approach considers the cost of production against the future value of that production?

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About This Quiz & Worksheet

Effectively test your understanding of a one-time investment and various credit poligy analysis approaches using the quiz/worksheet combo. In order to pass the quiz, you need to know how these approaches are carried out and their purpose.

Quiz & Worksheet Goals

These tools can help test your understanding of:

  • The approach that subtracts the carrying cost of a loan from the benefit of offering that loan
  • Type of risk where a borrower won't repay his or her debt
  • Type of approach that looks at credit as a one-time investment from a company
  • An approach that takes into account the cost of production against the future value of that production

Skills Practiced

  • Information recall - access the knowledge you have gained about the different approaches to credit policy analysis
  • Making connections - use understanding of the concept of the approach that subtracts a loan's cost from the advantage of offering it
  • Interpreting information - verify that you can read information about the approach that considers the cost of production against the future value of that production and interpret it correctly

Additional Learning

Set aside some more time to use the lesson called, Credit Policy Analysis: One-Shot & Accounts Receivables Approaches. Use this lesson to cover the following tasks:

  • Determine what credit policy involves
  • Compare and contrast the different approaches to credit policy analysis
  • Understand why offering credit to customers is risky
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