ACCT ch7 practice test - ACCT ch 7 practice quiz Seasonal...

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ACCT ch 7 practice quiz Seasonal cycles require careful planning of: cash inflows and outflows. borrowing. investing. all of these. Seasonal cycles cause income and expenditures to fluctuate. Because of this cash inflows and outflows, borrowing, and investing must be carefully planned. A common measure of the effect of a company's credit policies is receivable turnover. days' sales uncollected. both of these. Both the receivables turnover and days' sales uncollected are common measures of a company's credit policies. T he receivables turnover ratio consists of one balance sheet account and one income statement account. True The receivables turnover ratio does consist of one balance sheet account and one income statement account. It is computed by dividing net sales by average net accounts receivable. Money market funds usually: invest in very safe securities. are used to earn interest with cash not needed for current operations. are considered short-term debt of other entities. All of these are correct. Money market funds usually invest in very safe securities with funds not needed for current operations. They are considered short-term debt of other entities for which investors do not expect losses. Which of the following is true? Cash equivalents are classified as current assets. Cash equivalents are not stated at market value but at cost . They do not include certificates of deposit of any term but do include those maturing within 90 days or less . Cash equivalents are classified as current assets. When performing the bank reconciliation, outstanding checks should be: subtracted from the bank balance An electronic funds transfer is: simply a bookkeeping entry for the banks. a method of conducting business transactions that does not involve the actual transfer of cash.
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This note was uploaded on 03/28/2011 for the course ACCT 2301 taught by Professor G.a.gross during the Spring '11 term at Richland Community College.

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ACCT ch7 practice test - ACCT ch 7 practice quiz Seasonal...

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