Among the Four Cs of credit analysis, the recognition of revenue prematurely most likely reflects a company's:
A) character.
B) covenants.
C) collateral.

Question

Quizplus · Accepted Answer

Recognizing revenue prematurely is a sign of poor financial management and dishonesty, suggesting a lack of trustworthiness and integrity in the company's character. It does not directly relate to the other Cs of credit analysis, such as covenants or collateral.

Among the Four Cs of Credit Analysis, the Recognition of Revenue