1541. Which of the following is not a technique of receivables management ?

A. Funds flow analysis *
B. Ageing schedule
C. Days sale outstanding
D. Collection matrix

1542. Which of the following is not a part of credit policy?

A. Collection effort
B. Cash discount
C. Credit standard
D. Paying practices of debtors *

1543. Which is not a service of a factor ?

A. Administrating sales ledger
B. Advancing against credit sales
C. Assuming bad debt loss
D. None of the above *

1544. Credit policy of a firm should involve a trade- off between increased _________.

A. Sales and Increased profit
B. Profit and increased costs of receivables *
C. Sales and cost of good sold
D. None of the above

1545. Out of the following, What is not true in respect of factoring?

A. Continuous arrangement between factor and seller
B. Sale of receivables to the factor
C. Factor provides cost free finance to seller *
D. None of the above

1546. Payment to creditors is a manifestation of cash held for _________.

A. Transactionary motive *
B. Precautionary motive
C. Speculative motive
D. All of the above

1547. If the closing balance of receivables is less than th opening balance for a month then which on is true out of _________.

A. Collections > Current purchases
B. Collections > Current sales *
C. Collections < Current purchases
D. Collections < Current sales

1548. If the average balance of debtors has increased , which of the following might not show a change in general ?

A. Total sales
B. Average payables *
C. Current ratio
D. Bad debt loss

1549. Securitization is related to conversion of _________.

A. Receivables *
B. Stock
C. Investments
D. Creditors

1550. 80% of sales of 10,00,000 of a firm are on credit. It has a receivable turnover of 8. What is the average collection period (360 days a year ) and average debtors of the firm ?

A. 45 Days and 1,00,000 *
B. 360 Days and 1,00,000
C. 45 Days and 8,00.000
D. 360 Days and 1,25,000