Page 1 1. (TCO 2) Select any actions that do not affect the cash account. Select all that apply: (Points : 3) Goods are sold on credit An interest payment on a notes payable is made Raw materials are...

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Page 1
1. (TCO 2) Select any actions that do not affect the cash account. Select all that apply: (Points : 3)
Goods are sold on credit
An interest payment on a notes payable is made
Raw materials are purchased and paid for with credit
A new machine is purchased and paid for with the business line of credit
2. (TCO 2) Which one of the following will decrease the operating cycle? (Points : 3)
increasing the days' sales in inventory
decreasing the accounts payable period
decreasing the cash cycle
increasing the accounts receivable turnover rate
decreasing the accounts payable turnover rate
3. (TCO 2) Assume Green Leaf Nursery anticipated sales of $500 in the first quarter. Accounts receivable at the beginning of the year was $300. Assuming a collection period of 30 days, which is the approximate beginning balance for the second quarter? (Points : 3)
$550
$630
$250
$170
None of the above
4. (TCO 2) Best Environment Engineering wrote a check and mailed it to the Electric Co. When the Electric Co. went to deposit the check, it discovered that the bank was closed due to flooding in the area. It was 5 days before the Electric Co. could deposit the check from Best Environment Engineering. Because the Electric Co.'s bank was closed: (Points : 3)
Best Environment's collection float decreased.
the Electric Co.'s collection float decreased.
Best Environment’s disbursement float increased.
the Electric Co.'s disbursements float increased.
the ledger balance of Best Environment was less than it would have been otherwise.
5. (TCO 2) Which of the following statements is true? Select all that apply: (Points : 3)
The optimal credit policy minimizes the total cost of granting credit.
Firms should avoid offering credit at all cost.
An increase in a firm's average collection period generally indicates that an increased number of customers are taking advantage of the cash discount.
The costs of the credit application process and the costs expended in the collection process are carrying costs of granting credit.
Capacity refers to the ability of a firm to meet its credit obligations out its operating cash flows.
The optimal credit policy is the policy that produces the largest amount of sales for a firm.
6. (TCO 2) You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 2/25, net 40. How much should you remit if you take the discount? (Points : 3)
$52,200
$51,156
$51,678
None of the above
7. (TCO 2) Auto Parts sells 1,200 electric parts per week and then reorders another 1,200 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $750, what is the total carrying cost and the restocking cost, respectively? (Points : 3)
$2,400 and $39,900
$3,200 and $33,800
$2,400 and $39,000
$3,400 and $30,000
None of the above
8. (TCO 2) Company ABC has expected sales of 12,000 units this year, an ordering cost of $6 per order and carrying costs of $1.60 per unit. What is the EOQ? (Points : 3)
310 units
300 units
150 units
155 units
None of the above
9. (TCO 2) The _________ is the time it takes to acquire and sell inventory. (Points : 3)
cash cycle
operating cycle
inventory period
accounts receivable period
accounts payable period
10. (TCO 2) List three ways in which the firm can expedite payments and accounts receivables. (Points : 3)
Answered Same DayDec 20, 2021

Solution

Robert answered on Dec 20 2021
3 Votes
Page 1
1. (TCO 2) Select any actions that do not affect the cash account. Select all that apply:
(Points : 3)
Goods are sold on credit
An interest payment on a notes payable is made
Raw materials are purchased and paid for with credit
A new machine is purchased and paid for with the business line of credit
2. (TCO 2) Which one of the following will decrease the operating cycle? (Points : 3)
increasing the days' sales in inventory
decreasing the accounts payable period
decreasing the cash cycle
increasing the accounts receivable turnover rate
decreasing the accounts payable turnover rate
3. (TCO 2) Assume Green Leaf Nursery anticipated sales of $500 in the first quarter.
Accounts receivable at the beginning of the year was $300. Assuming a collection period
of 30 days, which is the approximate beginning balance for the second quarter? (Points : 3)
$550
$630
$250
$170
None of the above
4. (TCO 2) Best Environment Engineering wrote a check and mailed it to the Electric Co.
When the Electric Co. went to deposit the check, it discovered that the bank was closed
due to flooding in the...
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