To Accomplish the Objectives Set Forth in the Revenue Cycle,a

question 31

Multiple Choice

To accomplish the objectives set forth in the revenue cycle,a number of key management decisions must be addressed.Which of the decisions below is not ordinarily found as part of the revenue cycle?

• A)What credit terms should be offered?
• B)How often should accounts receivable be subjected to audit?
• C)How can customer payments be processed to maximize cash flows?
• D)What are the optimal prices for each product or service?

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Definitions:

Voting Stock

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors.

Fair Value

The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Equity Methods

An accounting technique used for recording investments in associate companies where the investor has significant influence but does not have full control or majority ownership, typically implying ownership of 20% to 50% of the voting stock.

Voting Stock

Shares of a corporation that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.