Moody's Analytics- Exit Test

What information in a credit agency report can help a bank assess a company’s management integrity?

• Opinion about the company management.

• Information about the financial performance.

• How freely the management shares information.

• Details on covenant compliance for the bank loans.

Special Mention Accounts were introduced as a new asset category between which two categories?

• Sub-standard and Doubtful.

• Standard and Sub-standard.

• Standard and Doubtful.

• Doubtful and Loss.

How many days is the short-term financing gap for a company with 47 trade receivables days, 68 inventory days and 63 trade payables days?

• 42

• 178

• 52

• 84

What is the first step for a management team in order to achieve results through the efforts of others?

• Incentivise the organisation in an effective manner

• Source the necessary resources

• Manage the critical business operations on a daily and long-term basis

• Set the strategic direction

Which activity can reduce a company’s cash flow position?

• Purchase of investments

• Sale of assets

• Increase in owner’s equity

• Collection of receivables

What type of early warning signals may be indicated as a result of technology changes?

• Operational

• Fundamental

• Business

• Market

Which type of charge is appropriate when the security is a factory?

• Hypothecation

• Lien

• Mortgage

• Pledge

Which party issues a letter of credit in a goods and services transaction?

• Applicant

• Beneficiary

• Seller

• Bank

What causes market overcapacity?

• Low product demand

• Drop in a sales price

• Industry growth

• Weak competition

What projected information is best to use to assess working capital limits?

• Sales

• Profit and loss statement

• Balance sheet

• Labour expenses