Accounts receivable due over 90 days total ________. (See Table 14.6) A) $200,000 B) $470,000 C) $300,000 D) $100,000 ANSWER C
Date: September 19th, 2020
A decrease in collection efforts will result in an increase in sales volume, an increase in the investment in accounts receivable, an increase in bad debt expenses, and a decrease in collection expenditures. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An evaluation of the firm’s collection efforts based on the aging schedule would suggest ________. (See Table 14.6) A) poor credit management B) satisfactory credit management C) superior credit management D) overzealous collection efforts ANSWER A
Date: September 19th, 2020
Increased collection expenditures should reduce the investment in accounts receivable and bad debt expenses, increasing profits. Indicate whether the statement is true or false ANSWER TRUE
Date: September 19th, 2020
An increase in collection efforts by a firm will result in ________ in sales volume, ________ in the investment in accounts receivable, ________ in bad debt expenses, and ________ in collection expenditures. A) an increase; a decrease; an increase; a decrease B) an increase; a decrease; a decrease; an increase C) an increase; a decrease; […]
Date: September 19th, 2020
What is the cost of marginal investments in accounts receivable under the proposed plan? (See Table 14.5) A) $1,817 B) $1,867 C) $1,733 D) $1,617 ANSWER C
Date: September 19th, 2020
What is the cost of marginal bad debts under the proposed plan? (See Table 14.5) A) $383 B) $765 C) $3,315 D) $5,100 ANSWER C
Date: September 19th, 2020
What is the net result of implementing the proposed plan? (See Table 14.5) A) $3,952 B) $3,869 C) $2,084 D) -$2,084 ANSWER A
Date: September 19th, 2020
A firm is considering relaxing credit standards, which will result in annual sales increasing from $1.5 million to $1. 75 million, the cost of annual sales increasing from $1,000,000 to $1,125,000, and the average collection period increasing from 40 to 55 days. The bad debt loss is expected to increase from 1 percent of sales […]
Date: September 19th, 2020
A firm is considering relaxing credit standards which will result in an increase in annual sales from $3 million to $3. 75 million, a decrease in the cost of annual sales from $2,225,000 to $2,000,000, an increase in additional profit contribution from sales of $10,000, and an increase in the average collection period of 15 […]
Date: September 19th, 2020
