List and describe the five Cs of credit and how lenders use them?
What will be an ideal response?
The five Cs of credit are:
1. Character - A borrower's willingness to pay their bills on time.
2. Capacity - A borrower's ability to pay their bills.
3. Capital - The assets owned by the borrower.
4. Collateral - A specific asset of some value that the borrower pledges to the lender. It can be taken away by the lender and sold to satisfy the debt if the borrower does not pay the loan.
5. Conditions - The economic conditions, typically beyond the borrower's control, that could affect the borrower's ability to repay the loan.
Each is intertwined with the others, and lenders use all five to assess if they will lend to you, and if so, how much and at what cost (rate).
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Which function manages the financial resources of the firm through portfolio management, banking, credit evaluation, and cash receipts and disbursements?
a. accounting b. finance c. materials management d. distribution
Ewing Corporation's controller has developed the cost and usage data listed below in preparation of standard unit cost information for the coming year. Direct materials quantity standard 3 pounds per product Direct labor time standard 5 hours per product Direct materials price standard $10 per pound Direct labor rate standard $ 9 per hour Standard variable overhead rate $ 5 per labor hour
Standard fixed overhead rate $10 per labor hour The total standard unit cost is a. $105. b. $150. c. $260. d. $34.
The measure of how well a process uses the time available to complete it is called ______.
A. cycle time B. flow time C. idle time D. balance efficiency
An investor purchased $50,000 of 10-year bonds it intends to hold to maturity. The investor's journal entry to record the purchase is a debit to Debt Investments-HTM for $50,000 and a credit to Cash for $50,000.
Answer the following statement true (T) or false (F)