bPreview File Edit View Go Tools Window Helpmgt120h-a17.pdfPage 5 of 1015. The retailer considers VISA and MasterCard sales asa. Cash sales.b. Promissory notes.c. Credit sales.d. Contingent sales.Cost-Volume-Profit Analysis4014. Receivables might be sold toa. Lengthen the cash-to-cash operating cycle.b. Take advantage of deep discounts on the cash realizable value of receivables.c. Generate cash quickly.d.Finance companies at an amount greater than cash realizable value.The Effect Of Prepaid Taxes On AssetsAnd Liabili...ODebenture ValuationCC7D↑VSearch(CªƠSat Apr 15 3:05 PM13. Goodwill can be recordedWhen customers keep returning because theyb. When the company ang because they are satisfied with the company's products.d. Only when there is an exchange transaction involving the purchase of an entirebusiness.c. When the company has exceptional morbusiness400-0 -0 =1Page 4 of 11

In business, sales are a crucial aspect of generating revenue and maintaining profitability. The…

Answered: 14. Receivables might be sold to a.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How will a firm's cash cycle be affected if one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, all else being equal (select the best choice below)? 1. If one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, its accounts payable days will increase. All else equal, this will cause the cash cycle of the firm to decrease. II. If one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, its accounts receivable days will increase. All else equal, this will cause the cash cycle of the firm to increase. III. If one of the firm's suppliers that was only accepting cash payment before, now offers a trade credit to the firm, its accounts payable days will decrease. All else equal, this will cause the cash cycle of the firm to decrease. IV. If one of the firm's suppliers that was only accepting cash payment before, now offers a…
Explain how each of the following factors would probably affect a firm’starget cash balance if all other factors were held constant.a. The firm institutes a new billing procedure that better synchronizes itscash inflows and outflows.b. The firm develops a new sales forecasting technique that improves itsforecasts.
Explain how the EOQ inventory model can be modified and used to help determine the optimal sizeof a firm’s cash balances. Do you think the EOQapproach to cash management is more or less relevant today than it was in precomputer, preelectronic communications days?
Concerning factoring, all of the following are true except? * factoring is done at a discount to the third party purchaser factoring speeds the inflow of cash to the seller of the receivables receivable lending is the process of factoring factoring discounts are often a function of the riskiness of the receivables
What are some tools that companies have to manage their (net operating) working capital? Provide examples of inventory and receivables management techniques. What is the Cash Conversion Cycle and why is this a useful metric? Are there risks if this is too low?
1.Based on the sales forecast, the finance manager estimates the receipt of cash based on cash and ________. Group of answer choices accounts receivables inventory sales credit sales net income
The higher the receivables turnover, the O higher the collection period. O more liquid the company's receivables are. O higher the credit sales. O poorer the receivables management.
What does a firm need to do to improve liquidity? Extend credit terms to customers in order to gain more sales Stock up on inventory in order to never run out of stock Pay all bills and payables when due Speed up collection of accounts receivable from customers
One of the following statement is true about strategies of liquidity management Select one: O a. Asset Liquidity Management or Asset Conversion Strategy. This strategy calls for storing liquidity in the form of illiquid assets (T-bills, fed funds loans, CDs, etc.) and selling them when liquidity is needed b. Borrowed Liquidity or Liability Management Strategy. This strategy calls for the bank to purchase or borrow from the money market to cover all of its liquidity needs Balanced Liquidity Strategy. The C. use of liquid asset holdings (Asset Management) O d. No need to follow any strategy for liquidity management
(all options information and correct answer please)Which of the following are ‘uses’ of cash from a cash flow perspective? (mark all that apply) a. Borrowing on the firm’s revolving line of credit b. Implementing a new share buyback program c. Purchasing a piece of real estate where you plan to build a new factory d. Purchasing inventory
A decrease in the costs of using an ATM causes money demand to increase. Shifting the Money demand curve to the right.Group of answer choices A. The first statement is false. The second statement is true. B. The first and second statements are both false. C. The first statement is true. The second statement is false. D. The first and second statements are both true.
Which of the following is false? a. Baumol model helps firm to find out their desirable level of cash balance under certainty b. Any presence of a cash buffer affects the cost of holding cash and ultimately the annual cost of cash for a particular firm c. A higher average daily disbursement float than average daily collection float is more desirable for a firm d. Accounts payable increase the number of days a firm’s resources are tied up in the operating cycle

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14. Receivables might be sold to a. Lengthen the cash-to-cash operating cycle. b. Take advantage of deep discounts on the cash realizable value of receivables. c. Generate cash quickly. d. Finance companies at an amount greater than cash realizable value.