{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

# quiz-ch28 - Questions in quiz-ch28.qz 1 Which one of the...

This preview shows pages 1–3. Sign up to view the full content.

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

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
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? [ ] The factor generally pays between 91 and 94 percent of the account receivable balance as a purchase price. [ ] The factor pays the full amount of the receivable to the firm which granted the credit and then collects a fee for services r [ ] Customers continue to send payments to the firm from which they made the original purchase.
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

### Page1 / 12

quiz-ch28 - Questions in quiz-ch28.qz 1 Which one of the...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online