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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Explain CECL (“Current Expected Credit Loss”) model.
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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
- 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
- How 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_forwardWhich of the following is not considered in determining credit scores Current economic conditions All of the answers listed here are considered in credit scores Timely payment of bills Length of credit historyarrow_forwardWhat is the debt credit rate for Montgomery, AL? and does is has impacts that must be paid to lure initial investors?arrow_forward
- What is Ration Analysis in Financial Analysis?arrow_forwardWhat information can best be elicited from a receivable ratio? A. company performance with current debt collection B. credit extension effect on cash sales C. likelihood of future customer bankruptcy filings D. an increase in future credit sales to current customersarrow_forwardwhy the credit qualities need to be investigated?arrow_forward
- Savings rate, Recession, Depression are factors relating to: a. Macroeconomic environment b. Microeconomic environment c. Internal Factors d. Financial Institutionsarrow_forwardWhich one of the following is not a factor that helps determine a company's credit rating? Its current ratio Its debt to assets ratio Its default risk ratio Its default risk rating (high, medium, low) Its interest coverage ratioarrow_forwardWhat are the four categories of collateral value for secured loans?How does each affect credit risk?arrow_forward
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