Companies frequently use information from the following sources when conducting their credit analysis:
A)the financial statement supplied by the customer.
B)the payment history supplied by other firms.
C)the payment history supplied by other firms and the payment history supplied by banks.
D)the financial statement supplied by the customer, the payment history supplied by other firms, and the payment history supplied by banks.

Question

Quizplus · Accepted Answer

The best choice is D because it includes all possible sources of information that companies use when conducting their credit analysis. The financial statement provided by the customer gives a comprehensive overview of their financial health, while the payment history supplied by other firms and banks provide valuable insights into the customer's payment behavior and creditworthiness. By using all three sources of information, companies can make a more informed decision on whether to extend credit to a customer.

Companies Frequently Use Information from the Following Sources When Conducting