WorksheetsChapter 7 Account Receivable and Inventory Management
Total questions: 10
Worksheet time: 3hrs 30mins
payment period for credit sales can be extended over 30 to 60 days. This will create ____ to the company
account payable
inventory
account receivable
marketable securities
one of the things that will determine the speed of payment from customers for credit sales is _____
cash discount policy
payback policy
bad debts
cash budget
a cash discount allows a ____ in price of payment is made within a specific time period.
increase
decrease
stable
uncertain
a 2/10, net 30 cash discount means that a person who purchase RM100 worth of product should pay RM (a) if he/she make the payment in day 8 after the purchase. (leave your answer to zero decimal places. Example; 20 )
banks may provide funds for firms for many purposes, EXCEPT
financing seasonal needs
product expansion
long term growth
managers' personal needs
in order for firms to give credit extension to their customers, they need to assess three primary policy variables which include the following, EXCEPT
credit standards
bad debts
terms of trade
collection policy
Banks will refer to the 5Cs of credit as an indication of whether a loan will be repaid on time, late, or not at all. The 5Cs cover the following, EXCEPT
characteristic
collateral
conditions
currency
an increase in the average collection period may be caused by ______
poor credit administration
good payable of raw materials
low bad debts
increase in firms' assets
In a manufacturing company, inventory is usually divided into three basic categories. Which of the following is included in these categories?
work in progress
returned goods
company's machines
partially finished raw materials
What will happen if the firm uses Just-in-Time (JIT) model in managing its inventory?
create inventories build up
minimize inventory
reduce quality of finished products
firms able to keep up with the demand all the time.
