Accounts Receivable, Finance And Accounting

Question: In a "Quotation" , it is vital that the contract clearly define the agreed commercial terms and conditions. Which one of the following does it exclude?
A
Price

B
Payment Terms

C
Freight/ Delivery Charges

D
Payment due

Note: answer not sure
1. Report
Question: The credit policy of Spurting Products inc. is "1.5/10, net 35." At present, 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of the invoice. If all the customers took advantage of the cash discount, the Receivables ________.
A
will be lower than the present level

B
will remain unchanged

C
will be higher than the present level

D
cannot be determined without more information

Note: answer not sure
1. Report
Question: Are adjustments to book interest earned but not received ever reversed?
A
Yes, immediately on the 1st of the following month

B
Yes, when the interest is actually paid

C
Never

D
Only if the interest exceeds $100

Note: answer not sure
1. Report
Question: A customer has ten open invoices of various amounts, and sends a check which does not indicate which invoices are being paid. The best thing to do is:
A
apply it starting with the oldest and move forward until fully applied

B
apply it to the newest invoices and charge them interest on the older, still open ones

C
spread it evenly between all open invoices

D
call the customer and ask them what invoices they are paying and/or how do they want the check applied

Note: answer not sure
1. Report
Question: The receipt of cash from a customer to clear his accounts would be recorded as___________.
A
debit to cash: credit to account receivable

B
debit to accounts payable; credit to cash

C
debit to accounts receivable; credit to cash

D
debit to cash; credit to accounts payable

Note: answer not sure
1. Report
Question: Bad Debts are shown on the following financial statements: _________
A
the Profit & Loss

B
the Profit & Loss & the Balance Sheet

C
the Balance Sheet and Statement of Equity

D
Cash Flow statement

Note: answer not sure
1. Report
Question: What do we call it when a firm extends credit terms that encourage the buyers of certain products to take delivery before the peak sales period and to defer payment until after the peak sales period?
A
Trade account

B
Cash discount

C
Peak trade discount

D
Seasonal dating

Note: answer not sure
1. Report
Question: Why must companies actively manage their outstanding receivables?
A
It is part of the job of any accounting department

B
Customers will never pay if they are not constantly reminded of the money due

C
Managing receivables makes cash flow into the company quicker than it would if no attention is paid to AR

D
Companies need to be prompt in replying to customer requests

Note: answer not sure
1. Report
Question: Credit given to a customer for part of the sales price of the merchandise not returned is called ______
A
credit memorandum

B
sales allowance

C
debit memorandum

D
sales return

Note: answer not sure
1. Report
Question: If your AR turnover went up from 5 to 7 over the course of a year, it means that _____________.
A
the company is selling more products or services

B
the company needs to be more aggressive in collections

C
the company has increased its collection performance

D
Accounts Receivable has increased by 40%

Note: answer not sure
1. Report

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Question: In a "Quotation" , it is vital that the contract clearly define the agreed commercial terms and conditions. Which one of the following does it exclude?

Question: The credit policy of Spurting Products inc. is "1.5/10, net 35." At present, 30% of the customers take the discount, 62% pay within the net period, and the rest pay within 45 days of the invoice. If all the customers took advantage of the cash discount, the Receivables ________.

Question: Are adjustments to book interest earned but not received ever reversed?

Question: A customer has ten open invoices of various amounts, and sends a check which does not indicate which invoices are being paid. The best thing to do is:

Question: The receipt of cash from a customer to clear his accounts would be recorded as___________.

Question: Bad Debts are shown on the following financial statements: _________

Question: What do we call it when a firm extends credit terms that encourage the buyers of certain products to take delivery before the peak sales period and to defer payment until after the peak sales period?

Question: Why must companies actively manage their outstanding receivables?

Question: Credit given to a customer for part of the sales price of the merchandise not returned is called ______

Question: If your AR turnover went up from 5 to 7 over the course of a year, it means that _____________.