What are the four elements of a credit policy? Briefly explain.

Q: Explain the characteristics of credit products.

A: When the banks or any financial institutes commitments or guarantees on the behalf of the customers…

Q: List and explain the differences between a self managed credit plan and a contracted credit plan.

A: A credit is a type of loan taken by individuals or corporations in which the borrowers borrow an…

Q: What are the five C's of credit?

A: BANKS use 5 c's to quantify and decide whether the applicant is eligible to give loan.

Q: What is easy-access credit?

A: Introduction: The ability to borrow cash or obtain goods or services with expectation of repaying it…

Q: Explain the other sources of credit

A: The term credit can be defined as the agreement between two parties involving a borrower and a…

Q: What is the net credit sales?

A: As per the information given,  Net credit sale = Closing balance of Trade and other receivables -…

Q: Define credit terms

A: Credit refers to the amount of money which is lend to the borrower for certain period of time.

Q: Define discounts (in credit terms)

A: Discount in credit terms is a method utilized to understand receivables for deal with cash flow…

Q: What is a line of credit? Give three examples?

A: Line of credit is the borrowing limit available to a customer by the bank. The customer can borrow…

Q: What are credit terms?

A: Credit terms or terms of credit It is the vender purchaser agreement that rundowns the planning and…

Q: Define credit standards

A: The set of standards that a firm or bank uses to choose if an advance or credit line is to be…

Q: What should be in the credit file

A: Following is the contains in credit file

Q: What is a sale on credit and why it is needed? Give three examples?

A: Sale on Credit: A sale on credit is revenue earned by a company when it sells goods and allows the…

Q: 1. Enumerate and explain the rules of debit and credit.

A: The entire subject or concept of accounting is based on the general rules of debit and credit. In…

Q: Define Credit analysis

A: Credit analysis is the method by which the creditworthiness of a business or organization is…

Q: Discuss, in general, what it means for the brothersto set a credit and collections policy

A: Answer: Credit and collection policy refers to the laws and regulations of the company governing the…

Q: What is a line of credit? A revolving credit agreement?

A: If a lender offers a revolving loan account, a particular credit cap is allocated to the lender.…

Q: What is the  basic differences between transferable letters of credit and back-to back letters of…

A: These are two types of credit given to businesses.

Q: what is debit and credit?

A: Debits and credits seem to be a bookkeeping notation framework that determines how and where every…

Q: Credit and collection management is also known as RCM. What is RCM and its meaning

A: credit and collection management is that term mostly used in the accounting for goods and services…

Q: What are the main definitions of credit facilitation, billing and invoicing, remittance processing,…

A: Credit facilitation-Credit facilitator refers to a person in the CFP Online System who is designated…

Q: Discuss creditworthiness and its relation to the 5 C's of credit.

A: Creditworthiness is the evaluation of one company by another company to determine whether the…

Q: What is meant by a line of credit?

A: Credit refers to the concept is being defined as the financial agreement where the borrowers receive…

Q: Define credit period

A: The purchase and sales transactions are in the form of cash or credit. If the payment is made at the…

Q: What is the extent of the assignment of credit? Explain

A: Assignment of credit is explained as under:

Q: How do I find the credit for partial payment?

A: Discount is a selling goods or service below the price of goods. This reduction in price is offered…

Q: what are the principal types of credit scoring models.

A: Credit score is referred as a number range from 300 to 850 which determines the creditworthiness of…

Q: 9. Documents of credit appraisal for invididual loan?

A: Credit appraisal is the process of assessing the credit worthiness of the loan applicant.

Q: What are the five Cs of credit? How do these serve as a yardstick for creditevaluation?

A: The “5 Cs of credit” is a system used to estimate the creditworthiness of the borrowers. The 5 Cs…

Q: What are the four things that affect your card-based credit costs?

A: A credit score is a number utilized by moneylenders to survey the likelihood of crediting cash to a…

Q: what is credit transactions?

A: credit transactions:-    Credit transaction is a transaction of which the repayment of money loaned…

Q: What is the objective of having a control system and what is the key points of a credit control…

A: Internal control:   Internal control can be defined as a process to ensure achievement of the…

Q: What are the 5 C’s of credit?

A: The 5 C's of credit is used by rhe lender to measure the credit worthiness of potential borrowers.

Q: What is line of credit?

A: Introduction: Usually, the word loan refers to a form of credit facility where a certain amount of…

Q: Choose one as the most important Cs of Credit and explain why?

A: In order to determine the creditworthiness of the borrower, a lender conducts a thorough analysis of…

Q: What are the four elements of a firm's credit policy?

A: 4 element of the firm’s credit policy are: Credit period The length of the time buyers that are…

Q: ring is/are categorized as open account credit?

A: Open account credit refers to a pre-approved loan between a lender/retailer and a borrower. This…

Q: What is a credit memo? When is it used?

A: Credit memo also known as credit memorandum or credit note  Credit memo is issued by the seller of…

Q: Define consumer credit markets

A: CONSUMER CREDIT MARKET-             Consumer credit refers to short- and intermediate-term personal…

Q: What is a credit note

A: Step 1 Credit note as the name depicts it generates some beneficiary status to some third party.

Q: Internal sources of credit information t

A: Second option is wrong because financial statements are published and can be used as an external…