Which one of the following will tend to increase the

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Survey of Accounting
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Chapter 9 / Exercise 13
Survey of Accounting
Warren
Expert Verified
58. Which one of the following will tend to increase the length of the credit period? A. Decrease in product costB.Decrease in consumer demandC. Decrease in collateral valueD. Increase in credit riskE. Increase in product standardizationRefer to section 17.3.Bloom's: ComprehensionDifficulty: BasicLearning Objective: 17-02 Analyze how firms manage their receivables and the abasic components of a firm's credit policiesSection: 17.3Topic: Credit period1-209
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Survey of Accounting
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Chapter 9 / Exercise 13
Survey of Accounting
Warren
Expert Verified
Chapter 01 - Introduction to Financial Management59. Which one of the following will tend to decrease the length of the credit period? A. Decrease in default riskB. Increase in the cost of the productC. Increase in competitionD.Decrease in the size of the accountE. Decrease in turnover rateRefer to section 17.3.Bloom's: ComprehensionDifficulty: BasicLearning Objective: 17-02 Analyze how firms manage their receivables and the abasic components of a firm's credit policiesSection: 17.3Topic: Credit period60. Which one of the following would be the most common evidence of indebtedness when a sale is made on open account? A. Sight draftB. Commercial draftC. Banker's acceptanceD. Promissory noteE.InvoiceRefer to section 17.3.Bloom's: KnowledgeDifficulty: BasicLearning Objective: 17-02 Analyze how firms manage their receivables and the abasic components of a firm's credit policiesSection: 17.3Topic: Invoice1-210
Chapter 01 - Introduction to Financial Management61. Which one of the following is most commonly used in international trades? A. Sight draftB. Time draftC. Commercial paperD.Banker's acceptanceE. Open accountRefer to section 17.3.Bloom's: KnowledgeDifficulty: BasicLearning Objective: 17-02 Analyze how firms manage their receivables and the abasic components of a firm's credit policiesSection: 17.3Topic: Banker's acceptance62. For which one of the following instruments does a bank guarantee payment by the buyer? A. Money market preferred stockB. Commercial paperC.Banker's acceptanceD. InvoiceE. Time draftRefer to section 17.3.Bloom's: KnowledgeDifficulty: BasicLearning Objective: 17-02 Analyze how firms manage their receivables and the abasic components of a firm's credit policiesSection: 17.3Topic: Banker's acceptance1-211
Chapter 01 - Introduction to Financial Management63. The optimal credit policy will do which one of the following? A. Maximize salesB. Minimize bad debtsC. Maximize units soldD.Minimize the total costs of granting creditE. Minimize carrying costsRefer to section 17.3.Bloom's: ComprehensionDifficulty: BasicLearning Objective: 17-02 Analyze how firms manage their receivables and the abasic components of a firm's credit policiesSection: 17.3Topic: Optimal credit policy

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