Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

11 Cards in this Set

  • Front
  • Back
What is the definition of credit?
A medium of exchange with limited acceptance.
3 things credit does for customers
1) Improves standard of living
2) Convenience
3) Handles emergencies
3 things credit does for business
1) Improves bottom line-profit
2) Obtain inventory
3) Acquire financial capital
3 things credit does for the economy
1) Stabilizes economy
2) fiscal policy
3) monetary policy
3 reasons a business offers credit
1) generate sales
2) improve customer service
3) meet competition
4) improve profits
What is credit managers role within a business organization?
Individual responsible for evaluating customer applications and has the power to commit company resources in credit transactions
Name 4 goals of credit manager
1) Increase sales revenues
2) Control operating costs and expenses
3) Monitor and control receivables
4) Reduce collection expenses and control bad debt
5) Maintain good customer relations
Name 5 C's of credit
3 benefits of automated credit approval process
1) Ability to use complex mathematical scoring models
2) Faster turnaround of applications
3) Ability to spend more time on questionable applications
4) Easier to trace customer data ie: duplication, fraud and inaccurate information
Name 4 things financial statement analysis answers
1) Does the company earn adequate profits
2) Does the company have sufficient liquidity
3) Can the company pay it's bils promptly
4) Is the company a good investment
What are 4 goals of a good collection system?
1) Aid the working capital of the firm
2) Reduce operating expenses and bad debts
3) Customer goodwill
4) Rehabilitate the customer
5) Aid the sales effort
6) Promote good communications with customer