1551. In response to market expectations , the credit pence r j been increased from 45 days to 60 days. This would result in _________.

A. Decrease in sales
B. Decrease in debors
C. Increase in bad debts
D. Increase in average collection period *

1552. If a company sells its receivable to another party to raise funds, it is known as ________.

A. Securitization
B. Factoring *
C. Pledging
D. None of the above

1553. Cash discount term 3/15 net 40 means_________.

A. 3 % Discount if payment in 15 days otherwise full payment in 40 days *
B. 15% Discount if payment in 3 days otherwise full payment in 40 days
C. 3 % Interest if payment made in 40 day and 15% Interest thereafter
D. None of the above

1554. If the sale of the firm are 60,000 and the average debtors are 15,00,000 then the receivables turnover is ________.

A. 4 Times *
B. 25%
C. 400 %
D. 0.25 Times

1555. If cash discount is offered to customers, then which of the following would increase?

A. Sales *
B. Debtors
C. Debt collection period
D. All of the above

1556. Receivables management deals with ___________.

A. Receipts of raw materials
B. Debtors collection *
C. Creditors management
D. Inventory management

1557. Which of the following is related to receivables management ?

A. Cash budget
B. Economic order quantity
C. Ageing schedule *
D. All of the above

1558. EOQ is the quantity that minimizes________.

A. Total ordering cost *
B. Total inventory cost
C. Total interest cost
D. Safety stock level

1559. ABC analysis is used in ____________.

A. Inventory management *
B. Receivables management
C. Accounting policies
D. Corporate governance

1560. If one information is available, The general rule for valuation of stock for balance sheet is _________.

A. Replacement cost
B. Realizable value
C. Historic cost *
D. Standard cost