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Unformatted text preview: Sheet1 Page 1 Questions in quiz-ch28.qz 1) Which one of the following is the normal order of events when attempting to collect an account receivable? I. send a delinquency letter to the customer II. take legal action against the customer III. call the customer IV. employ a collection agency [ ] III, I, II, IV [ ] I, III, II, IV [ ] I, IV, III, II [ ] III, I, IV, II v [ ] I, III, IV, II 2) Kaiser Foods currently sells $689,000 of food each period at a cost of $602,000. The probability of payment is 96 percent a [ ] -$802.30 v [ ] -$646.48 [ ] -$554.15 [ ] $-221.18 [ ] $-108.98 3) The Tree Folks manufacture wood swing sets. The firm currently has a cash only sales policy but is considering switching t [ ] 72.11 percent [ ] 74.78 percent [ ] 85.64 percent [ ] 87.39 percent v [ ] 99.23 percent 4) Snow Shovel Central sells it products to retail outlets during the early fall season. The firm offers terms of 2/15, net 45, Jan [ ] December 15 [ ] January 1 [ ] January 15 v [ ] February 15 [ ] February 28 5) Mark is the credit manager for Stifler Co. Their best customer, Allen Gee's, places an average order of $74,000 and pays fo v [ ] -$927.92 [ ] -$418.27 [ ] -$101.13 [ ] $210.19 [ ] $1,014.68 6) The optimal amount of credit for a firm exists when: [ ] a probability of payment of 100 percent exists for all customers. [ ] sales are maximized. v [ ] the incremental cash flows from sales equal the incremental carrying costs of accounts receivable. [ ] the marginal carrying costs equal zero. [ ] the marginal opportunity costs equal zero. 7) Which of the following involve the sale of accounts receivable? I. securitization II. captive financing III. factoring Sheet1 Page 2 IV. secured debt v [ ] I and III only [ ] II and IV only [ ] III and IV only [ ] I, III, and IV only [ ] II, III, and IV only 8) What is the function of a payments pattern? [ ] lists customers by the average number of days it takes to collect a payment from them v [ ] describes the probability that an account will remain outstanding for one more day [ ] describes the probability that any one outstanding receivable will be uncollected [ ] shows how the average collection period has changed over a number of years [ ] shows how the average collection period changes during the course of a year 9) Charleston Shipping has a 2/15, net 45 day collection policy. The accounts receivable balances as of today, October 17, ar Invoice dateAmount September 1$415 July 28505 October 12113 September 27330 September 3075 October 1225 v [ ] $2.26 [ ] $3.19 [ ] $4.08 [ ] $5.24 [ ] $6.76 10) Sandstone Productions can manufacture a vase for $25 and sell it for $29 cash. Without offering credit, the firm can sell 4 [ ] $160.00 [ ] $165.14 [ ] $167.42 [ ] $178.66 v [ ] $180.00 11) Which one of the following statements is correct regarding accounts receivables that have been factored?...
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This note was uploaded on 06/15/2008 for the course ACC 501 504 taught by Professor Na during the Spring '08 term at University of Texas at Austin.
- Spring '08