Data Analytics For Accounting
19th Edition
ISBN: 9781260375190
Author: RICHARDSON, Vernon J., Teeter, Ryan, Terrell, Katie
Publisher: Mcgraw-hill Education,
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Question
Chapter 1, Problem 12DQ
To determine
Explain why the debt-to-income attribute might be included in the declined loans dataset considered in the chapter be a predictor of declined loans. Explain how about the credit (risk) score.
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Chapter 1 Solutions
Data Analytics For Accounting
Ch. 1 - Prob. 1MCQCh. 1 - Prob. 2MCQCh. 1 - Prob. 3MCQCh. 1 - Prob. 4MCQCh. 1 - Prob. 5MCQCh. 1 - Prob. 6MCQCh. 1 - Prob. 7MCQCh. 1 - Prob. 8MCQCh. 1 - Prob. 9MCQCh. 1 - Prob. 10MCQ
Ch. 1 - Prob. 1DQCh. 1 - Give an example of how Data Analytics creates...Ch. 1 - Prob. 3DQCh. 1 - Prob. 4DQCh. 1 - Prob. 5DQCh. 1 - Prob. 6DQCh. 1 - Prob. 7DQCh. 1 - Prob. 8DQCh. 1 - Prob. 9DQCh. 1 - Prob. 10DQCh. 1 - Prob. 11DQCh. 1 - Prob. 12DQCh. 1 - To address the question Will I receive a loan from...Ch. 1 - Download and consider the data dictionary file...Ch. 1 - Download and consider the rejected loans dataset...Ch. 1 - Prob. 3PCh. 1 - Prob. 4PCh. 1 - Consider the 2013 declined loan data from...Ch. 1 - Consider the 2013 declined loan data from...
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Similar questions
- What is credit risk? Discuss the more qualitative factors that creditors also consider in conjunction with quantitative ratio analysis when analyzing credit risk. PLEASE DON'T COPY AND PASTE, USE YOUR WORDS.arrow_forwardWhat is the significance of credit/debt ratings?arrow_forwardCredit scoring is a process used to Multiple Choice determine what interest rate to charge a borrower, based on risk considerations. determine the amortization period for a term loan, based on risk considerations. calculate a borrower's return on equity. calculate a borrower's leverage position.arrow_forward
- How does a lower credit rating affect borrowers lenders and financial institution? What are the implications of the downgrade on the health of the financial system?arrow_forwardwhat basic criteria are commonly used in evaluating credit risk?arrow_forwardWhich of the following statements is most correct? * An aging schedule is used to determine what portion of customers pay cash and what portion buy on credit. If a firm changes its credit terms from 1/20, net 40 days, to 2/10, net 60 days, the impact on sales can't be determined because the increase in the discount is offset by the longer net terms, which tends to reduce sales. Aging schedules can be constructed from the summary data provided in the firm's financial statements If a firm's volume of credit sales declines then its DSO will also decline. The DSO of a firm with seasonal sales can vary. While the sales per day figure is usually based on the total annual sales, the accounts receivable balance will be high or low depending on the season.arrow_forward
- are designed to indicate the potential default risk that lenders are undertaking when they grant a loan. Repayment capacity ratios O Financial efficiency ratios Profitability ratios Solvency ratios Liquidity ratiosarrow_forwardHow does credit risk for a financial institution differs from default risk and What are the problems faced by a financial institution to measure credit risk?arrow_forwardWhat are the main differences between ARMs and FRMs loans? You need to highlight the differences in terms of allocation of risk between borrowers and lenders.arrow_forward
- Which of the following is the function of the financial market ? Select one : a . It decides the interest rate b . It makes loan available c . It channels funds from lenders - savers to borrowers - spenders D. None of thesearrow_forwardA bank is least likely to use which of the following ratioswhen analyzing the likelihood that a borrower will payinterest and principal on its loans?a. Current ratio. c. Times interest earned ratio.b. Debt-to-assets ratio. d. Price/earnings ratio.arrow_forwardWhat is the calculation for the debt ratio? Explain what the debt ratio evaluates?arrow_forward
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