A Key to Estimating an Accurate Amount of Cash to Be

question 17

Multiple Choice

A key to estimating an accurate amount of cash to be collected from sales is:

• A)the accuracy of the sales forecast.
• B)the accuracy of the estimated collection patterns for sales.
• C)the accuracy of the estimated uncollectible sales.
• D)All of the answers are correct.

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Definitions:

Principle Amount

The original sum of money borrowed in a loan or put into an investment.

Time

A continuous, measurable quantity in which events occur in a sequence from the past through the present to the future.

Simple Interest

Interest computed on the original sum of a loan or deposit, not including the effects of compounding throughout the duration.

Simplification

The process of reducing a mathematical expression or equation to its simplest form.