If Partial Payment Is Made and Installment Payments Are Set

question 92

Multiple Choice

If partial payment is made and installment payments are set up after the voucher is prepared for the total amount owed:

• A) the old voucher is cancelled and a new voucher is prepared for the new amount owed.
• B) the old voucher is credited for the entire amount.
• C) Vouchers Payable is debited; Purchases Returns and Allowances is credited.
• D) None of these answers is correct.

Comprehend the techniques for managing and financing working capital, including the use of marketable securities.

Recognize the cost implications of offering trade credit discounts and the use of stretching accounts payable.

Identify the purposes and differences between short-term and long-term cash budgets.

Understand the principles guiding the use of trade credit and the evaluation of credit cost.

---

Definitions:

Analysis

The process of examining components or structures of a subject in detail to understand it better or make informed decisions.

Leadership Processes

These are the actions, behaviors, and practices leaders engage in to influence the motivation, attitudes, and behaviors of others to achieve organizational goals.

Empowerment

The process of granting employees the authority, confidence, and resources to take initiative and make decisions within their roles.

Advantages

The conditions or circumstances that put someone or something in a favorable or superior position.