The Effective Management of Accounts Receivable Requires Financial Managers to

question 77

Multiple Choice

The effective management of accounts receivable requires financial managers to

• A) review the credit history of new customers.
• B) provide prompt cash payments to suppliers.
• C) allow customers more time in paying their past due accounts.
• D) refuse bank-issued credit cards.

Understand the perfect tender rule and when it applies.

Identify and explain the exceptions to the perfect tender rule.

Recognize obligations of buyers and sellers under the UCC.

Appreciate nuances in contract law concerning acceptance, rejection, and cure of nonconforming goods.

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Definitions:

Destructive Leadership

A leadership approach characterized by the systematic and repeated behavior by a leader that violates the legitimate interest of the organization by undermining and/or sabotaging the organization’s goals, tasks, resources, and effectiveness and/or the motivation, well-being or job satisfaction of his/her subordinates.

Unstable

Lacking stability; prone to sudden change or unpredictability in terms of physical, emotional, or situational conditions.

Ethical Leadership

Involves guiding a group or organization with values, integrity, and actions that are morally right.

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief or behavior or for a chain of reasoning.