Finance And Accounting

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
Question: Where should Sales Discount be recorded?
A
Income statement credit column

B
Balance sheet debit column

C
Income statement debit column

D
Balance sheet credit column

Note: answer not sure
1. Report
Question: Accounts Receivable is recorded as _________
A
an asset

B
a liability

C
a contingent liability

D
None of these

Note: answer not sure
1. Report
Question: Why is "day's sales in Accounts Receivable" important to calculate?
A
It tells you the total day's sales that were made

B
It is required by the SEC for all public companies

C
It indicates the company's overall financial health

D
It makes comparison with prior results possible to see improvements or non improvements, and lets a company know how long people are taking to pay on average

Note: answer not sure
1. Report
Question: Which of the following statements regarding the calculation of 'day's sales' in receivables is incorrect?
A
Allowance for doubtful accounts is generally not considered in the formula for 'day's sales'

B
This formula must be applied in two steps.

C
The number of 'day's sales' in Accounts Receivable is always 365.

D
Net sales are not used in the calculation of 'day's sales' in Accounts Receivable.

Note: answer not sure
1. Report
Question: Gerald's had opening total stockholders' equity of $160,000. During the year, total assets increased by $240,000 and total liabilities increased by $120,000. Their net income was $180,000. No additional investments were made. However, some amount was paid as dividend during the year. What was the amount of the dividend paid?
A
$20,000.

B
$60,000.

C
$140,000.

D
$220,000.

Note: Not available
1. Report
Question: '2/10, net 30' is an example of:
A
Terms

B
Methods

C
Systems

D
None of these

Note: Not available
1. Report

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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 _____________.

Question: Where should Sales Discount be recorded?

Question: Accounts Receivable is recorded as _________

Question: Why is "day's sales in Accounts Receivable" important to calculate?

Question: Which of the following statements regarding the calculation of 'day's sales' in receivables is incorrect?

Question: '2/10, net 30' is an example of: