When You Go to a Restaurant, You Know That There

question 17

Multiple Choice

When you go to a restaurant, you know that there is a certain sequence of things that you need to do: (a) wait to be seated, (b) order, (c) eat, and then (d) pay. In other words, you have a ____ for what needs to be done at restaurants.

• A)frame
• B)heuristic
• C)schema
• D)script

Learn the effects of environmental factors on float management.

Understand the calculations involved in determining net float and the implications for cash management.

Understand methods to decrease a firm’s collection time.

Recognize the best cash management practices for firms with multiple offices and national customers.

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Definitions:

Aging the Accounts

The process of categorizing and reviewing accounts receivable based on the length of time an invoice has been outstanding.

Adjusting Entry

A journal entry made in accounting records to update the balances of accounts at the end of an accounting period.

Bad Debt Expense

An estimate of receivables that a company does not expect to collect, recognized as an expense in the income statement.

Open Account

A type of credit arrangement where goods and services are delivered with the understanding that payment will be made at a later date.