Which one of the following items of evaluation would Susan score the highest on?
Susan has always maintained an excellent credit rating over the years. She has an annual income of $63,000, has lived at her current residence thirteen years, and has worked at the same job for eight years. Susan works in a clerical position, has two credit cards and maintains two bank accounts. Susan is very conservative and has all of her savings ($12,000) in a NOW account at her local bank. One of her credit cards has a balance of $550 and has an APR of 23%. Susan has been making monthly minimum payments on the credit card. Out of curiosity she would like to know how her credit card companies judge her creditworthiness and what she can do to improve her financial situation.
A) Employment history
B) Annual income
C) Length of residence
D) None of the above
Answer: C
You might also like to view...
Which of the following is true concerning the direct method of calculating operating cash flows?
A) does not tie the net income reported on a company's income statement to the net cash provided from operating activities B) does not show how the changes in the elements of a company's operating cycle affected its operating cash flows C) reports a company's operating cash inflows separately from its operating cash outflows D) All of these choices are true concerning the direct method.
Owens Company uses the direct write-off method of accounting for uncollectible accounts receivable. On December 6, Year 1, Owens sold $6,300 of merchandise to the Valley Company. On August 8, Year 2, after numerous attempts to collect the account, Owens determined that the account of the Valley Company was uncollectible. a. Prepare the journal entry required to record the transactions on August 8.b. Assuming that the $6,300 is material, explain how the direct write-off method violates the expense recognition principle in this case.
What will be an ideal response?
. In this pricing strategy, prices are guided by the price other businesses set for similar products and services:
a. customer-led pricing b. loss-leader pricing c. competition-led pricing d. skimming
The management of Bonga Corporation is considering dropping product D74F. Data from the company's accounting system for this product for last year appear below:Sales$830,000Variable expenses$390,000Fixed manufacturing expenses$266,000Fixed selling and administrative expenses$232,000All fixed expenses of the company are fully allocated to products in the company's accounting system. Further investigation has revealed that $111,000 of the fixed manufacturing expenses and $103,000 of the fixed selling and administrative expenses are avoidable if product D74F is discontinued. What would be the financial advantage (disadvantage) from dropping product D74F?
A. ($58,000) B. ($226,000) C. $226,000 D. $58,000