To Charge Customers Interest on Overdue Accounts,you Need to -

question 17

Multiple Choice

To charge customers interest on overdue accounts,you need to -

• A)enter the interest rate charges in the customer's ledger record and Sage 50 Accounting will automatically create an invoice for the interest charge when the account is overdue
• B)enter the interest rate charges as ledger settings,print statements and create the invoices for the interest amounts on the statements
• C)calculate the amount of interest owed and create an invoice for this amount
• D)print and send out customer statements and enter the receipts when the customers pay the interest charges

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Definitions:

Direct Method

The direct method is a way of preparing cash flow statements where actual cash flows from operating activities are reported instead of adjustments from net income.

Direct Approach

A method used in accounting that focuses on the immediate recognition of revenues and expenses when they are incurred, without adjusting for accruals.

Indirect Approach

A method used in the preparation of the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.