Which one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of time
Which one of the following best defines the term credit scoring? A. Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases B. Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding C. Evaluating the opportunity costs of a credit policy D. Process of quantifying the probability of default when granting credit to customers E. Tracking of both the number and the size of customer orders over a period of time
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 13MC: What information can best be elicited from a receivable ratio? A. company performance with current...
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Question
Which one of the following best defines the term credit scoring?
A. |
Categorizing customers into groups depending on the length of time it takes each customer to pay for purchases |
B. |
Compiling a list of accounts receivable segregated by the length of time each receivable has been outstanding |
C. |
Evaluating the |
D. |
Process of quantifying the probability of default when granting credit to customers |
E. |
Tracking of both the number and the size of customer orders over a period of time |
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