Login / Signup

Question

Which one of the following is not a purpose of "credit monitoring"?

A Ensuring that the quality of the credit is maintained at the same level as at the time of sanction and there is no slippage.

B Ensuring compliance with terms of sanction/covenants stipulated at the time of sanction.

C Effecting reasonable/sizeable recovery in accounts, already classified as NPA.

D Keeping track of the borrowing company

E All of the above

Practice Next

More Basic Accounting Concepts Questions

Which statement about cash-settled share-based payments is true?
A CC account shows frequent excess drawings, decline in stock levels, delays in statutory payments and high turnover in sister concerns. These indicators m...
A seasonal manufacturing unit submits a monthly cash budget showing peak cash deficits of ₹18 crore in August, ₹22 crore in September and ₹15 crore in Octo...
A term loan installment and interest both remain overdue for more than 90 days. However, interest has been serviced once during this period but principal r...
RWA increases by ₹2,000 cr with no increase in capital. What happens to CRAR?
MNP Inc has a gross profit of Rs 75000 on a sale of Rs 350000. The balance sheet shows average total assets of Rs 200000 with an average inventory of Rs 50...
Project IRR is 14%. Cost of capital 11%. NPV at 11% is positive ₹8 cr. However, DSCR averages only 1.05. What is the correct appraisal inference?
The Union Budget for 2018-19 announced that farmers in India would be given an MSP of at least one and a half times the cost of production. Accordingly, th...
Depreciation is charged as per which principle?
A manufacturing unit has Raw Material holding of 60 days, WIP of 30 days, Finished Goods of 45 days and Receivables of 75 days. Payables period is 60 days....

Relevant for Exams:

Hey! Ask a query

ask-question