Indicate whether each of the following actions is primarily related to (a) Managing cash needs, (b) Setting
Question:
(a) Managing cash needs,
(b) Setting credit policies,
(c) Financing receivables, or
(d) Ethically reporting accounts receivable:
1. Selling notes receivable to a financing company.
2. Changing the terms for credit sales in an effort to reduce the days' sales uncollected.
3. Buying a U.S. Treasury bill with cash that is not needed for a few months.
4. Comparing receivable turnovers for two years.
5. Setting a policy that allows customers to buy on credit.
6. Making careful estimates of losses from uncollectible accounts.
7. Establishing a department whose responsibility is to approve customers' credit.
8. Borrowing funds for short-term needs in a period when sales are low.
9. Revising estimated credit losses in a timely manner when conditions change.
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Related Book For
Financial and Managerial Accounting
ISBN: 978-1133940593
10th edition
Authors: Belverd E. Needles, Marian Powers, Susan V. Crosson
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