Accounts Receivable, Finance And Accounting

Question: Which of the following statements is correct?
A
A low receivables turnover is desirable

B
An increase in the net profit margin with no change in sales (or) assets means a poor ROI

C
The higher the tax rate for a firm, the lower the interest coverage ratio.

D
The lower the total debt-to-equity ratio, the lower the financial risk for a firm

Note: answer not sure
1. Report
Question: What is the best first step to take with delinquent payers?
A
Make a threatening phone call

B
Mail a letter stating they have been sent to collections

C
Mail a copy of their statement along with copies of the open invoices

D
Don't inform them of your actions and send them directly to collections

Note: answer not sure
1. Report
Question: Which of the following is used to calculate the Accounts Receivable turnover ratio?
A
Turnover Ratio Credits Sales/ Accounts Receivable

B
Accounts Receivable/ Turnover Ratio Credit Sales

C
Turnover Ratio Cash Sales/ Accounts Receivable

D
Total Sales/ Accounts Receivable

Note: answer not sure
1. Report
Question: The antecedents of receivables are critical to the management of receivable assets and is the key driver of the cost to manage a company's revenue stream. A simple formula to illustrate this point is ____________.
A
high customer satisfaction – accurate invoice = excellent receivable results

B
high customer satisfaction + excellent receivable results = accurate invoice

C
high customer satisfaction + accurate invoice = excellent receivable results

D
None of these

Note: answer not sure
1. Report
Question: The Accounts Receivable department uses a_________
A
purchase ledger

B
sales ledger

C
cash book

D
None of these

Note: answer not sure
1. Report
Question: A customer used his credit card to pay $400 for the services received. The credit card company charged 2.5% as service charges. What is the amount that the company will record as deposit to its checking account as a result of the sales transaction?
A
$400.00

B
$410.00

C
$390.00

D
$388.00

Note: not sure
1. Report
Question: Under which concept do goods sold to a sole proprietorship firm fall?
A
Materiality Concept

B
Consistency Concept

C
Business Entity Concept

D
Money Measurement Concept

Note: not sure
1. Report
Question: In which of the financial statements will the sales discount be reflected?
A
Balance Sheet

B
Post-closing Trial Balance

C
Income Statement

D
Statement of the Owner's Equity

Note: not sure
1. Report
Question: How do collection agencies typically work with a company with receivables?
A
They charge an hourly fee for their efforts to collect your debts

B
They charge aset fixed fee up front

C
They charge a percentage of the amount collected on your behalf, typically 20% to 25%

D
Stock options

Note: not sure
1. Report
Question: On a company's Balance Sheet, A/R is the amount_________.
A
that the company owes to a particular party

B
that a party owes to the company

C
not shown in the balance sheet

Note: not sure
1. Report

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Question: Which of the following statements is correct?

Question: What is the best first step to take with delinquent payers?

Question: Which of the following is used to calculate the Accounts Receivable turnover ratio?

Question: The antecedents of receivables are critical to the management of receivable assets and is the key driver of the cost to manage a company's revenue stream. A simple formula to illustrate this point is ____________.

Question: The Accounts Receivable department uses a_________

Question: A customer used his credit card to pay $400 for the services received. The credit card company charged 2.5% as service charges. What is the amount that the company will record as deposit to its checking account as a result of the sales transaction?

Question: Under which concept do goods sold to a sole proprietorship firm fall?

Question: In which of the financial statements will the sales discount be reflected?

Question: How do collection agencies typically work with a company with receivables?

Question: On a company's Balance Sheet, A/R is the amount_________.