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CA Inter C- 9 Receivable Management

Total questions: 15

Worksheet time: 10mins

Name
Class
Date
1.

The Credit terms may be expressed as “3 / 15 net 60 “. This means that a 3 % discount will be granted if the customer pays within 15 days, if he does not avail the offer he must make payment within 60 days.

a)

I agree with the statement

b)

I do not agree with the statement

c)

I cannot say.

d)

None of these

2.

The term float is used in

a)

Inventory Management

b)

Receivable Management

c)

Cash Management

d)

Marketable securities

3.

Factoring is a method of financind whereby a firm sells its trade debts at a discount to a financial institution. The Statement is

a)

Correct

b)

Incorrect

c)

Partially Correct

d)

I can not say

4.

A factoring arrangement can be both with recourse as well as without recourse:

a)

True

b)

False

c)

Partially Correct

d)

Cannot Say

5.

In Q 2 of test we find that Liquidity position has improved in Sept 2021 compared to June 2021

a)

True

b)

False

c)

Partially Correct

d)

Can not Say

6.

In Q 2 of test we find that Collection in quarter ended Sept 2021 has improved compared to June 2021

a)

True

b)

False

c)

Partially Correct

d)

Can not Say

7.

When receivables are analysed to their age, the process is known as preparing the

a)

Receivable Management

b)

ageing schedules of receivables

c)

Cash Management

d)

None of these

8.

In Q.1) of test additional contribution is highest in

a)

Policy A

b)

Policy B

c)

Policy C

d)

Policy D

9.

In Q.1) of test additional Interest is highest in

a)

Policy A

b)

Policy B

c)

Policy C

d)

Policy D

10.

In Q.1) of test additional Bad Debt is highest in

a)

Policy A

b)

Policy B

c)

Policy C

d)

Policy D

11.

In Q.1) of test additional NP/(L) is highest in

a)

Policy A

b)

Policy B

c)

Policy C

d)

Policy D

12.

Amount of Fixed Cost

a)

75,000

b)

50,000

c)

25,000

d)

None of these

13.

The Method used by u for evaluation of credit policy is Incremental Method

a)

Incremental Approach

b)

Northwest Method

c)

No method Approach

d)

Modi’s Approach

14.

When a firm advises its customers to mail their payments to special post office collection centers, the system is known as

a)

Concentration Banking

b)

Lock Box System

c)

Playing the Float

d)

None of these

15.

The term”net 50” implies that the customer will make payment

a)

Exactly on 50th Day

b)

Before 50th day

c)

Not later than 50th day

d)

None of these