Which of the following is not an appropriate means of assessing the credit worthiness of a customer?
A) Rely on personal judgment
B) Look at the customers annual reports and accounts
C) Assume the customer will pay
D) Use a credit rating agency

Question

Quizplus · Accepted Answer

Assuming the customer will pay without any evidence or assessment is not a reliable or appropriate means of assessing creditworthiness. Relying on personal judgment can also be biased and subjective. The best means of assessing creditworthiness would be to look at the customer's annual reports and accounts, use a credit rating agency, and consider other relevant financial factors.

Which of the Following Is Not an Appropriate Means of Assessing