Which Statement Best Describes Receivables Management

question 22

Multiple Choice

Which statement best describes receivables management?

• A)A firm that makes 90% of its sales on credit and 10% for cash is growing at a constant rate of 10% annually. This firm will be able to keep its accounts receivable at the current level, since the 10% cash sales can be used to support the 10% growth rate.
• B)In managing a firm's accounts receivable, it is possible to increase credit sales per day yet still keep accounts receivable fairly steady, provided the firm can shorten the length of its collection period (its DSO).
• C)If a firm has a high percentage of accounts over 30 days old, this is a sure sign that the credit manager is not doing his or her job well.
• D)Since receivables and payables both result from sales transactions, a firm with a high receivables-to-sales ratio must also have a high payables-to-sales ratio.

Grasp the structure and purpose of the cost reconciliation report.

Comprehend the concept of equivalent units in process costing.

Recognize how manufacturing overhead and conversion costs are treated in a process costing system.

Identify the role of the weighted-average method in process costing and its impact on cost calculation.

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Global Marketing Environment

The external factors in international markets that affect marketing strategies, including economic, cultural, legal, and technological factors.

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Goods or services produced in the United States and sold to customers in other countries.

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