CH. 29 Practice Multiple Choice Questions
1. Selling goods and services on credit is:
A. an investment in a customer.
B. necessary because customers cannot pay for the goods.
C. a decision independent of customers.
D. permissible if your bank lends the mo
Practice Multiple Choice Questions CH. 27
1. Net working capital is defined as:
A. the current assets in a business.
B. the difference between current assets and current liabilities.
C. the present value of short-term cashflows.
D. the difference between
Practice Problem 2 Credit Management
ABC Corp has provided the following data:
Annual credit sales: $10 million
Average collection period: 60 days
Terms: net 30
Interest rate: 5%
ABC Corp. proposes to offer a discount policy of 2/10, net 30. It anticipate