Receivables Management

The objective of a credit policy is to curtail the credit period allowed to debtors

• True

• May be

• False

• none

If cash discount is offered to customers, then sales would increase.

• True

• False

• May be

• none

ln Debtors Turnover Calculation,____________is taken in the numerator

• Credit Sales

• Debtors

• Credit Purchase

• Creditors

Receivables management involves a __________ between costs and benefits of receivable

• Discount

• Trade-off

• recommendation

• none

lf the credit sales of the firm are Rs. 6,00,000 and the average debtors are Rs. 1,50,000; then the receivables turnover is _______ Times.

• 2 times

• 3 times

• 4 times

• 5 times

When the Credit period is increased from 30 days to 60 days in response to market expectations, its implications would be decrease in debtors.

• True

• False

• May be

• none

Receivables Management deals with ___________ Collection.

• Creditors

• Debtors

• Working Capital

• none

Cash discount term 3 / 15, net 40 means __________.

• 15% Discount if payment in 3 days, otherwise full payment in 40 days

• 40% Discount if payment in 3 days, otherwise full payment in 15 days

• 3% Discount if payment in 15 days, otherwise full payment in 40 days

• none

Bad debts refers to default cost.

• True

• False

• may be

• none

Working Capital Management refers to Receivables Management

• True

• False

• May be

• none