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41.
Which of the following are frequently used as sources of information when
trying to ascertain the creditworthiness of a customer?
I. payment history with similar firms
II. credit reports
III. financial statements
IV. information provided by a bank
42.
When evaluating the creditworthiness of a customer, the term character
refers to the:
43.
Which one of the five Cs of credit refers to a firm's financial reserves?
44.
Which one of the five Cs of credit refers to the general economic situation in
the customer's line of business?
45.
Which one of the following statements is correct?
46.
Which one of the following inventory items is probably the least liquid?
47.
Which one of the following inventory items is probably the most liquid?
48.
Which one of the following inventory-related costs is considered a shortage
cost?
49.
The ABC approach to inventory management is based on the concept that:
50.
The EOQ model is designed to determine how much:
51.
At the optimal order quantity size, the:
52.
The EOQ model is designed to minimize:
53.
Which one of the following items is most likely a derived-demand inventory
item?
54.
Inventory needs under a derived-demand inventory system are:
55.
A just-in-time inventory system:
I. when implemented properly reduces the cost of inventory to zero.
II. increases the inventory turnover rate.
III. is sufficient to handle immediate production needs.
IV. minimizes the costs of holding inventory.
56.
The incremental investment in receivables under the accounts receivable
approach is equal to:
57.
The accounts receivable approach to credit policy supports the theory that:
58.
Which two of the following are the key elements in determining whether or
not a switch from a no-credit policy to a credit policy is advisable?
I. variable cost per unit
II. cash discount percentage
III. credit price
IV. default rate
59.
On average, your firm sells $38,700 of items on credit each day. The firm's
average operating cycle is 49 days and it acquires and sells inventory, on
average, every 17 days. What is the average accounts receivable balance?
60.
The Winter Store just purchased $48,300 of goods from its supplier with
credit terms of 2/10, net 25. What is the discounted price?
61.
Today, October 12, Nadine's Fashions purchased $511 worth of
merchandise from a supplier. The credit terms are 1/5, net 20. By what day
does Nadine's have to make the payment to receive the discount? Note:
October has 31 days.
62.
A supplier grants your firm credit terms of 2/10, net 40. What is the
effective annual rate of the discount if the firm purchases $4,800 worth of
merchandise?
