Which of the following changes in credit standards and conditions would cause an improvement in profit? A) Increase in the turnover of accounts receivable B) Decrease in units sold C) Increase in collection expenses D) An increase in the percentage of doubtful accounts receivable.

Which of the following changes in credit standards and conditions would cause an improvement in profit? A) Increase in the turnover of accounts receivable B) Decrease in units sold C) Increase in collection expenses D) An increase in the percentage of doubtful accounts receivable.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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If CBA Failed to meet earning expectations because Loan Impairment expense was Higher than expected, the ERC is likely to be? A. Small, as imperfections are 'fictitious accounting' B. Big, as markets dislike impairments more than other forms of expenses C. Small, because impairment represents once off expense D. Very large, because loan impressions account for a significant portion of the revenue
Problem Attached
When assessing credit losses on estimated uncollectible notes receivable, the discounted cash flow technique is often used, discounting at the current interest rate in effect when the credit loss is estimated or re-estimated. True or False True False
RiverRocks, Inc., is considering a project with the following projected free cash flows: Year 2 3 4 Cash Flow - $50.0 $10.0 $20.0 $20.0 $15.0 (in millions) The firm believes that, given the risk of this project, the WACC method is the appropriate approach to valuing the project. RiverRocks' WACC is 12.0%. Should it take on this project? Why or why not? The timeline for the project's cash flows is: (Select the best choice below.) O A. Cash Flows (millions) $50.0 - $10.0 - $20.0 - $20.0 - $15.0 Year 1 2 3 4 O B. Cash Flows (millions) $50.0 - $10.0 $20.0 - $20.0 - $15.0 + Year 1 2 3 4 O C. Cash Flows (millions) - $50.0 $10.0 $20.0 $20.0 $15.0 Year 2 3 4 O D. Cash Flows (millions) $50.0 $10.0 $20.0 $20.0 $15.0 Year 1 2 3 4 The net present value of the project is S million. (Round to three decimal places.) RiverRocks V take on this project because the NPV is (Select from the drop-down menus.)
Which of the following increases the cash conversion cycle? A.A decrease in inventory turnover B.An increase in the cash discount C.An increase in accounts payable D.A decrease in inventory level
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.
Question If the % of uncollectible accounts does not change, there cannot be a savings for this concept simply because of a decrease in sales. true or false?
Question Select three answers for changes in credit standards that are causes of changes in profits: A) Decrease in sales volume. B) Applying an aging analysis of balances C) Increase in contribution margin D) Increase in financial expenses due to an increase in the interest rate. E) Granting of discounts to incentivize prompt payment F) Increase in the investment in accounts receivable.
How does a lower credit rating affect borrowers lenders and financial institution? What are the implications of the downgrade on the health of the financial system?
Receivables are valued and reported in the statement of financial position at their gross amount less any sales returns and allowances and less any cash discounts. True or False
What si the financial manipulation? How does it involves a considerable decrease in the number of days sales outstanding?

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