Cash at Bank, in the Sales and Collection Cycle, Will

question 38

Multiple Choice

Cash at bank, in the sales and collection cycle, will ultimately be affected by:

• A) cash discounts.
• B) sales returns and allowances.
• C) bad debts.
• D) all of the above

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Definitions:

Acid-test Ratio

A financial metric that measures a company's ability to pay off its short-term liabilities with its quick assets including cash, marketable securities, and receivables.

Income from Continuing Operations

This refers to the earnings generated from the normal business activities excluding one-time transactions, discontinued operations, and other irregular items.

Loss on Discontinuance

A financial loss that occurs as a result of the cessation of a business unit or operation.

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales.