How to Analyze a Credit Policy


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The amount of money that flows through a company during a period of time is which of the following?

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1. Which of the following are risks of extending credit?

2. What is one of the best ways to gain information on a potential customer's ability to pay?

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About This Quiz & Worksheet

Evaluate credit policies and your knowledge of them with this printable worksheet and quiz. Topics addressed by practice questions include extending credit, money flowing through a company, a customer's payment abilities, and real life applications of credit policy.

Quiz & Worksheet Goals

You will be tested on the following by quiz questions:

  • Amount of money that flows through a company during a period of time
  • How to gain information on a customer's ability to pay
  • Risks of extending credit
  • What to consider when extending credit
  • Applications of credit policy to businesses

Skills Practiced

Students will exercise these skills throughout their work:

  • Critical thinking - apply relevant concepts to examine information about how a business should extend credit in a different light
  • Reading comprehension - ensure that you draw the most important information from the related lesson on evaluating credit policies
  • Information recall - access the knowledge you've gained regarding a customer's payment abilities
  • Knowledge application - use your knowledge to answer quiz questions about risks of extending credit

Additional Learning

Make sure to look at the accompanying lesson titled How to Analyze a Credit Policy for more information on this topic. In this lesson, the following goals will be covered:

  • Define credit policy, credit limit and other key terms
  • Know what variables to consider when creating a credit policy
  • Understand how extending credit can affect a business and its finances
  • Apply concepts discussed in the lesson to business situations