Which of the following is not among the consequences of a loose credit policy ?     a) Sales increase  B) Collection expenses increase  NS) Funds tied to receivables increase.  D) The amount of doubtful receivables decreases.  TO) Transaction costs increase as they analyze new customers.

Q: An ideal credit card has a higher APR. No interest is charged on a cash advance. Credit limit…

A: A credit card is a plastic card issued by the banks or other financial institutions allowing the…

Q: on with customers about their ball cts current period sales revenue. of sales returns and allowances

A: Net price method is an accounting technique where the purchase / sale is recorded at at the net…

Q: Which of the below is true? Select one: Credit spreads tend to be lower in bull markets Credit…

A: From the given statements, we have to select the most correct statement. A bear market is a market…

Q: Which one of the following statements regarding the loans market is false? a) The principal-agent…

A: Please see the next step for the Answer

Q: Which of the following is generally the least expensive source of funding? A) demand deposits B)…

A: Demand deposits refer to funds held in bank accounts that can be withdrawn by the account holder at…

Q: A high average collection period may indicate:     a. Management's willingness to quickly write-off…

A: The average collection period(ACP) refers to the time gap between the credit sale date and the date…

Q: o know if

A: The correct Option is D " All of the above options are correct". We know that provision for…

Q: 22. What is the basic accounting problem created by the monetary unit assumption when there is…

A: The monetary unit assumption is a foundational concept that assumes a stable and consistent unit of…

Q: What two approaches can managers take to speed up sluggish collections of receivables? List one…

A: Accounts receivable: Accounts receivable refers to the amounts to be received within a short period…

Q: Penultimate Company uses a perpetual inventory system and has a December 31 year-end. Its records…

A: "Since you have asked multiple questions, the first question was answered for you. If you want the…

Q: Occasionally, the company will contemplate changing its credit standards in order to improve its…

A: Credit Standards are the standards of the company which tells about the company's ability to pay its…

Q: Need Help

A: Question: 71Write-Off Method:When a business makes a sale on account, that may not translate to…

Q: 16) Which of the following is a reason that financial institutions want consumers to use de cards?…

A: A debit card is a electronic  card that deducts money directly from a consumer's account to pay for…

Q: Explain the following four graphs in the context of accounts receivable management.

A: The increase in Quality of account rejected will reduce sales.  Increasing the quality of accounts…

Q: Which of the following is correct with regards to cash discounts offering? * Investment in accounts…

A: Cash discount is given to customers for making instant payments while they purchase goods or avail…

Q: in discretionary fiscal policy (e.g., taxes) and automatic stabilizer ployment insurance benefits)…

A: Government changes the policy to bring desired impact on the economy.

Q: Which of the following statements is false?   A. Credit spreads narrow during an economic…

A: Credit Spread is the difference between the yield of the bonds with similar maturity but having…

Q: Which is correct with regards to the effects of restricting credit standards? * O An increase in…

A: A credit policy lays out the conditions under which consumers who purchase on credit must pay back…

Q: Which one of the following combinations relating to the above statements is correct?

A: (1) Businesses should deny credit to customer to eliminate the costs of collecting trade…

Q: What is the key advantage of using electronic payments instead of currency or checks?   A. Lower…

A: Opportunity costs refers to the benefits that are foregone when a firm implements any project.

Q: Why smaller companies choose direct method to write off uncollectible accounts? a. Uncollectible…

A: Why smaller companies choose direct method to write off uncollectible accounts? Answer)They have…

Q: Which of the following is true? O If a firm's volume of credit sales decreases, then its liquidity…

A: Following is the correct option.

Q: Credit sale to customer [ Choose ]            Increase Bank Side              Would not be found on…

A: Bank reconciliation statement: This statement shows the deposits, withdrawals and other charges and…

Q: Retail time deposits and certificates of deposit have high withdrawal risk to issuers.   Select…

A: Retail time deposits refer to the deposits that are made with banking institutions that provide a…

Q: The cost of not taking the discount a cash discount is the implied rate of interest paid in order to…

A: When a supplier offers a cash discount, it means that if the buyer pays the invoice within a certain…

Q: Sources of repayment for a loan include all of the following EXCEPT: A. Sale of older equipment B.…

A: A loan is defined as the amount borrowed by a person or a business entity from another person or…

Q: Revolving lines of credit generally do not involve the use of credit cards and often offer borrowers…

A: Overdraft protection is linked to your checking account in case you overdraw your account. It draws…

Q: Which of the following method is used by the companies to finance their receivables from slow paying…

A: There are various short term sources of finance

Q: when required reserves fall, banks cease granting new loans, which cause _________(assets/…

A: In Banking Sector, when new loans are given which results in flow of money, it is said that money is…

Q: 1. Explain why the formal credit market fails to meet the financial service needs of the poor.

A: Introduction : The formal credit market is the system of financial institutions and services that…

Q: Which of the following is a valid alternative action for an organization to take to minimize credit…

A: Accounts receivables refer to the amount that is yet to be received from the customers to whom goods…

Q: increasing collection period for trade receivable suggest about a firm’s credit policy

A: The average collection period is the average number of days required to collect invoiced amounts…

Q: Which of the following is not a reason for the Jones Hardware Store to accept credit cards from…

A: the benefits of credit cards payments are : 1. faster payments 2. attractive offers  3. default in…

Q: When applying for credit, lenders will consider your: A. Capacity B. Collateral C. Character D. All…

A: Question 1: When applying for credit, lenders will consider your:D. All of theseExplanation: When…

Q: an example of how the factors in a firm's credit policy might differ between relaxed and restrictive…

A: Answer: The company’s credit policy consists of the following four key factors like credit period,…

Q: What is the most important reason credit unions are able to offer lower loan rates and higher…

A: The question is asking for the primary reason why credit unions can offer lower loan rates and…

Q: When deciding to accept a cash discount from a supplier, on what day is it advisable to take the…

A: Cash discount refers to the discount given by the supplier if the amount is paid before the maximum…

Q: Bulldogs inc. will least likely experience which of the following if the firm shifts its credit…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: Case 8 Decide whether each situation is or is not a symptom of revenue fraud. Then explain (1) why…

A: The income earned due to performing regular business operation is known as revenue. It is computed…

Q: Credit spreads tend to widen as the credit cycle improves.   Select one: True False

A: Credit spreads tends to narrow when the credit cycle improves and they widen when the credit cycle…

Q: Which is correct with regards to the effects of restricting credit standards? a. Investment in…

A: Restricting credit standard means company strict the credit policy. When company is more concerned…