WorksheetsCredit & Collection Management
Total questions: 11
Worksheet time: 5mins
Credit is a privilege granted by a creditor to a customer to defer the payment of a debt, to incur debt and defer its payment, or to purchase goods or services and defer payment.
a. True
b. False
c. Maybe
d. Unsure
Installment sales of real estate were being made by the (a) in the time of the Pharaohs.
A common form of investment and credit, especially in Italy, was the (a) whereby the capitalist advanced money to the merchant and thus shared the risk.
The primary reason for a company to offer credit terms to customers is to accommodate the sale of goods and services in order to create revenue.
a. True
b. False
The following are the principal reasons why a company offers credit except:
Price
Competition
Convenience
Demand
Credibility
A business may offer special credit terms as part of a promotional program for a product.
Sales
Promotion
Advertisement
Marketing
Another form of credit was the “debt note,” which was developed at fairs held regularly in the centers of trading areas during the Middle Ages.
True
False
The vast boundaries of the Roman Empire (a) widespread trading and a broader use of credit.
Write down the complete name of your instructor including the middle initial
(a)
What is Credit?
Granting you are an Account Officer of XYZ Corporation and is tasks by your superior to collect the monthly dues of Mr. Sy amounting to P5,040, is it acceptable to collect P5,000 from the latter since he is short of cash? Explain your answer. (5 points)
