Busn 379 Week 7 100 All Answers 1 Question Tco 2 Select Any Actions

BUSN 379 Week 7 ***100% All correct answers***

1. Question : (TCO 2) Select any actions that increase the cash account. Select all that apply:

payment is received on a receivable

An interest payment on a notes payable is made

A payment due is received from a client

An old machine is sold for cash

Points Received: 3 of 3
Comments:

2. Question : (TCO 2) Which one of the following will decrease the operating cycle?

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

Points Received: 3 of 3
Comments:

3. Question : (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?

$550

$630

$250

$170

None of the above

Points Received: 3 of 3
Comments:

4. Question : (TCO 2) Which of the following does not reduce collection float?

deposit collections at least daily.

make sure all checks it receives are properly dated and signed.
utilize the benefits of the Check Clearing Act for the 21st Century.
consolidate all lockboxes into one lockbox located near the home office.

Points Received: 3 of 3
Comments:

5. Question : (TCO 2) Which of the following statements is true? Select all that apply:

The optimal credit policy minimizes the total cost of granting credit.

There is an opportunity cost associated with not offering credit.

An increase in a firm’s average collection period generally indicates that at least some customers are taking longer to pay.

The costs of the credit application process and the costs expended in the collection process are not carrying costs of granting credit.

Character 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.

Points Received: 3 of 3
Comments:

6. Question : (TCO 2) You place an order for 100 units of inventory Part A at a unit price of $522. The supplier offers terms of 1/25, net 40. How much should you remit if you take the discount?

$52,200

$39,150

$51,678

None of the above

Points Received: 3 of 3
Comments:

7. Question : (TCO 2) Auto Parts sells 1,600 electric parts per month and then reorders another 1,600 parts. If the relevant carrying cost per electric part is $4 and the fixed order cost is $650, what is the total carrying cost and the restocking cost, respectively?

$6,400 and $33,800

$3,200 and $33,800

$6,400 and $7,800

$3,200 and $7,800

None of the above

Points Received: 3 of 3
Comments:

8. Question : (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?

310 units

300 units

150 units

155 units

None of the above

Points Received: 3 of 3
Comments:

9. Question : (TCO 2) The _________ is the time it takes to acquire and sell inventory.

cash cycle

operating cycle

inventory period

accounts receivable period

accounts payable period

Points Received: 3 of 3
Comments:

10. Question : (TCO 2) List three ways in which the firm can expedite payments and accounts receivables.

Points Received: 3 of 3
Comments: