Question by "finance"

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Select any actions that increase the cash account. Select all that apply: (Points : 3)
payment is received on a receivable
An interest payment on a notes payable is made
A payment due is received from a client
An old machine is sold for cash

2. (TCO 2) Which one of the following will decrease the operating cycle? (Points : 3)
increasing the days' sales in inventory
decreasing the accounts payable period
decreasing the cash cycle
increasing the accounts receivable turnover rate
decreasing the accounts payable turnover rate

3. (TCO 2) Assume Green Leaf Nursery anticipated sales of $500 in this quarter. Accounts receivable at the beginning of the quarter was $300. Assuming a collectionperiod of 30 days, which is the approximate cash collections amount for the quarter? (Points : 3)
None of the above

4. (TCO 2) Which one of the following practices will reduce a firm's collection float? (Points : 3)
utilizing zero-balance accounts
depositing checks weekly rather than daily
requiring all customers pay by check rather than with cash
installing a lockbox system
paying all bills five days sooner

5. (TCO 2) Which of the following statements is true? Select all that apply: (Points : 3)
The optimal credit policy minimizes the total cost of granting credit.
Firms should avoid offering credit at all cost.
An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.
The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit.
Capacity refers to the ability of a firm to meet its credit obligations out its operating cash flows.
The optimal credit policy is the policy that produces the largest amount of sales for a firm.

6. (TCO 2) You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 3/25, net 40. How much should you remit if youtake the discount? (Points : 3)
None of the above

7. (TCO 2) Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixedorder cost is $750, what is the total carrying cost and the restocking cost, respectively? (Points : 3)
$2,400 and $39,900
$3,200 and $33,800
$2,400 and $39,000
$3,400 and $30,000
None of the above

8. (TCO 2) Company ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 per unit. What is the EOQ? (Points :3)
310 units
300 units
150 units
155 units
None of the above

9. (TCO 2) The _________ is the time it takes to acquire and sell inventory. (Points : 3)
cash cycle
operating cycle
inventory period

accounts receivable period
accounts payable period

10. (TCO 2) List three examples of short-term investments. (Points : 3)

Seen 9 months ago Smith Jones 2 answers

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