finman Quiz 2

What does Direct Send reduce significantly?

• Clearing float

• Payment processing time

• Transaction fees

• Customer complaints

What is a method to slow down disbursements without damaging credit standing?

• Controlled disbursing

• Increasing credit limits

• Reducing payroll frequency

• Offering discounts

Which of the following is NOT a responsibility of financial managers in cash management?

• Maintain sufficient cash for obligations

• Ensure accurate cash tracking

• Prevent fraud and theft

• Maximize sales

What does receivables management primarily focus on?

• Reducing operational costs

• Collecting outstanding payments

• Managing inventory levels

• Increasing production capacity

Which of the following balances liquidity, profitability, and risk in receivables management?

• Credit policy evaluation

• Inventory turnover

• Cash flow analysis

• Effective receivables management

What happens to the investment in accounts receivable when the credit period is extended?

• It fluctuates

• It increases

• It remains the same

• It decreases

What is the purpose of incremental analysis in receivables management?

• To analyze market trends

• To determine inventory levels

• To evaluate employee performance

• To assess changes in credit policy

Which of the following is NOT one of the 5 C's of Credit?

• Conditions

• Cost

• Capacity

• Character

What does a credit term of 2/10, net 30 indicate?

• 2% penalty if paid late

• No discount offered

• 2% discount if paid in 10 days

• Full payment due in 20 days

What is the effect of longer credit terms on sales?

• They decrease sales

• They reduce customer satisfaction

• They have no effect

• They increase sales