Finals

Question 1

A decision in advance

Answer 1

Credit policy

Question 2

It’s task revolves around the gathering of all credit information about the applicant and assembling him so that they could be of help in guiding the loan officer in their assessment

Answer 2

Credit department

Question 3

A man who occupies a very important position in the structure economy.
Upon his decision rests thr success or failure of the credit organization

Answer 3

Credit manager

Question 4

A task of verifying as well as evaluation of the applicants character credit standing and integrity to the process of data gathering of all essential facts

Answer 4

Credit investigation

Question 5

It revolves around the presence and cooperation of a staff of trained, experienced and capable personnel whose task and responsibilities are delineated by the kind of positions they hold

Answer 5

Credit work

Question 6

It contains the following information subject of appraisal, land, identity, description of land etc

Answer 6

Bank appraisal report

Question 7

It evolves from an unwritten set of standards nebulous to more specific criteria covering the conditions under which loans are made

Answer 7

Credit policy

Question 8

A system of gathering and putting every information about customers and applicants into a folder which is filed in proper order

Answer 8

Credit files

Question 9

The terms and conditions under which the credit is granted

Answer 9

Credit term

Question 10

The length of time within which the customers is expected to remit in part or in full

Answer 10

Credit period

Question 11

This approach emphasizes affirms financial performance and its assets position as of a specified date

Answer 11

Inward

Question 12

Returns to the compensating considerations purposely intended to shield the interest of the creditor from bad debts

Answer 12

Collateral

Question 13

Refers to money for the businessman

Answer 13

Capital

Question 14

Borrowers willingness to discharge his financial obligation as promise

Answer 14

Character

Question 15

Company which gathers and distributes information about the credit position of individuals firms and corporation

Answer 15

Credit agencies

Question 16

Any presentation of financial data from accounting records

Answer 16

Financial statements

Question 17

It is measured by the success of a business in maintaining and licensing the owner’s equity

Answer 17

Profitability

Question 18

When the credit granting concerned generally request the loan applicants that it be furnished with a list of the banks and business firms with which the applicants had business dealing at the moment

Answer 18

Trade references

Question 19

The ability of return objects due to insufficiency of funds

Answer 19

Liquidity

Question 20

Its function consists of the collection of every bit of information vital to the credit function which it disseminates to its members for their guidance

Answer 20

Credit management association of the philippines

Question 21

Used to express the relationship of one variables to another

Answer 21

Ratios

Question 22

These are issues that are developed through the use of data in the budget

Answer 22

Plan or budgeted standards

Question 23

It describes the sources of funds and uses that have been made of them during an accounting period

Answer 23

Funds flow statement

Question 24

It shows the movement of cash in and out of the business

Answer 24

Cash flow statement

Question 25

These are figures from the fonts flow statement which are derived from the income statement and the comparative balance sheets

Answer 25

Sources of data

Question 26

The standards are generally recognized as desirable regardless of the type time stage of business cycle or objective of the analyst

Answer 26

Absolute standard

Question 27

This form is generally prepared for all clients of the bank whether old or new for a particular type of business or industry

Answer 27

Financial statement highlights

Question 28

An analysis of the financial statement conducted which will provide valuable insight into the financial conditions and operations of a business

Answer 28

Financial analysis

Question 29

This applies to the record of past financial and operating performance of individual business

Answer 29

Past performance

Question 30

It refers to the average arithmetic or median ratio of the member of the same industry

Answer 30

Industry average or median

Question 31

Those stocks whose price are coated and are transacted to manila and makati stock exchanges

Answer 31

Listed stocks

Question 32

The process of evaluating the property subject to inspection and appraisement to arrive to its fair market value based on existing conditions in the locality and general economic condition

Answer 32

Appraisal

Question 33

Ascertaining the actual existence of the property determine its exact location and to look into its actual condition

Answer 33

Ocular inspection

Question 34

Consists of fixed or immovable properties or what are known as the term land

Answer 34

Real estate

Question 35

A type of movable property

Answer 35

Chattel

Question 36

This entails the gathering of currencies rises or market values of the chattel being appraised

Answer 36

Market value approach

Question 37

This method is based on the principle that no prudent purchaser will pay more than what it will cause him to acquire an equal desirable substitute site

Answer 37

Cost approach

Question 38

This method of valuation is based on the principle that value tends to be set by the present worth of the rights to future not benefits of maybe derived from ownership

Answer 38

Income approach

Question 39

Important papers which attest among other things that existing ownership and possessions of the equipment subject to appeasement

Answer 39

Documents

Question 40

These are valued available market quotations

Answer 40

Very prime stocks