Question 4 The correct flow of inventory is Beginning inventory + Purchases -COGS - Ending Inventory Beginning inventory +Purchases +COGS Ending Inventory Beginning inventory - Purchases - COGS Ending Inventory Beginning inventory Purchases + COGS - Ending Inventory Question 5 Covenants represent: O The property that a company pledges to guarantee repayment O The maximum that a creditor will allow a customer to owe at any point in time Promises the company makes to the creditor Terms and conditions set forth in a lending agreement to reduce the probability of nonpayment Question 6 Expected credit loss is calculated as: O Chance of default X Total Debt O Chance of default X Z-Score O Chance of default X Loss given default Chance of default X Market value of Equity