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