Critical Thinking Questions Case 1-1 You Work in the Sales

question 9

Multiple Choice

Critical Thinking Questions Case 1-1 You work in the Sales department of a company that has three store locations; Downtown, Midtown, and Uptown. You are creating a summarized worksheet about the company's sales to send to the General Manager. So far, you have created a worksheet that lists each store location in cells A4 through A6. Quarterly sales for Downtown are in cells B4 through E4, Midtown are in cells B5 through E5, and Uptown quarterly sales are in  cells B6 through E6.  Write the complete formulas for the Total row, cell C8 to calculate the second quarter sales for the three stores.

• A) =SUM(C4:C6)
• B) =TOT(C4-C6)
• C) =TOT(C4:C6)
• D) =SUM(C4_C6)

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Definitions:

Credit Cost Curve

A graphical representation of the relationship between the cost of credit (interest rates) and the quantity of credit available in the market.

Collection Policy

Collection Policy is a set of procedures that a company uses to manage and collect payments from its customers, ensuring timely collection of receivables.

Aging Schedule

A tabulation of accounts receivable broken down by age, typically in 30-day increments, to assess the collectibility of the receivables.

Cash Discount

A reduction in the price of goods or services offered by the seller to the buyer for prompt payment.