Which of the following is not a part of credit policy?
Detailed Answer
Correct answer: (D)
Paying Practices of debtors
2
If the closing balance of receivables is less than the opening balance for a month then which one is true out of
Detailed Answer
Correct answer: (B)
Collections>Current Sales
3
80% of sales of 10,00,000 of a firm are on credit. It has a Receivable Turnover of 8. What is the Average collection period (360 days a year) and Average Debtors of the firm?
45 days and 1,00,000
Detailed Answer
Detailed Answer
Correct answer: (A)
45 days and 1,00,000
360 days and 1,00,000
45 days and 8,00,000
360 days and 1,25,000
4
If cash discount is offered to customers, then which of the following would increase?