Free Credit Risk Management MCQ Questions and Answers

Question 1

Which of the aforementioned claims is true?

Accepted Answer

The balance sheet lists assets and liabilities as a particular date

Answer

The P/L Statement of Sources and application of funds is a snapshot of the business on one day

Answer

The P/L statement is a snapshot of the business on one day

Answer

The balance sheet shows the growth of sales over a year

Question 2

What is a true statement about ratios?

Accepted Answer

Ratios are more useful when compared with previous years

Answer

Ratios concerning the market value of a company

Answer

None of these

Answer

Ratios are calculated in an identical way all over the world

Question 3

The term "operational statement" refers to which of the following statements?

Accepted Answer

P & L statement

Answer

Unaudited Statement

Answer

Balance Sheet

Answer

Funds flow statement

Question 4

This includes a summary of the company's operations, often provided by the chairman

Accepted Answer

Annual Statement

Answer

Consolidated financial statement

Answer

Unaudited Statement

Answer

Pro-forma Statement

Question 5

Which statement presents a hypothetical situation?

Accepted Answer

Pro-forma Statement

Answer

Consolidated financial statement

Answer

Annual Statement

Answer

Unaudited Statement

Question 6

Which of the following is an unqualified assessment of the company's financial statements?

Accepted Answer

A Statement to the effect that the accounts as presented by the company directors provide a 'true and fair' view in the opinion of the accounts

Answer

A sell-out by Andersen to keep lucrative corporate consulting business

Answer

An opinion about company accounts put forward by a bank rather than a firm of accountants

Answer

An endorsement of a company's credit worthiness

Question 7

Which financial statement demonstrates the source and use of funds?

Accepted Answer

Cash flow

Answer

Unaudited Statement

Answer

Balance Sheet

Answer

P & L statement