Asked by Sophia Winner on Jun 23, 2024
Verified
Thomson is a manager at a bank.He has to decide whether to lend an amount of $10,000 to Safe Toy.He should:
A) approve the loan application without checking the company's credibility.
B) review the company's financial statements.
C) prepare an organizational budget.
D) report the organization's financial performance to outsiders.
E) turn down the loan application.
Organizational Budget
A detailed financial plan that outlines an organization's expected revenues and expenditures over a specific period of time.
- Identify and describe the key financial documents used by organizations.
- Appreciate the essential importance of revenue, net income, and expenses in accounting reports.
Verified Answer
DC
Desire CorcinoJun 27, 2024
Final Answer :
B
Explanation :
Thomson should review the company's financial statements to assess its financial health and ability to repay the loan, which is a standard practice in the banking industry before approving a loan.
Learning Objectives
- Identify and describe the key financial documents used by organizations.
- Appreciate the essential importance of revenue, net income, and expenses in accounting reports.
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