Merits and drawbacks of credit rating
Write down the merits and drawbacks of credit rating?
Expert
The merits and drawbacks of credit rating are illustrated below:- i) People with superior credit will have their capability enhanced for the borrowing. Lenders will be capable to rewarded or punished by the people with their reports on the practices of their credit responsibility ii) The drawbacks can take place when the credit information that is been reported or when the characteristics of the consumer's is stolen. It is actually hard for the lenders to get the information if it is lost or it is very hard and strenuous process.
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The 2010 annual report of Willamette Valley Vineyards, Inc., comprised the following information associating to their allowance for doubtful accounts: Balance in allowance at the starting of the year $54,330, accounts written off throughout the year $51,467, balance in allowance at the end of the ye
Rs. Sales 2,40,000 Variable costs 1,44,000 Fixed costs 26,000 Profit before tax 70,000 Rate of tax 40% Firm is proposing to buy the new plant that could generate extra annual profit of Rs. 10,000. The fixed cost of new plant is expected to Rs. 4000. New plant would increase sales volume by Rs. 40,00
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