1) Which is NOT correct about extending credit?

a. companies may have a separate credit and collection department

b. there should be policies in place for over-due accounts

c. the company should run credit checks before issuing credit

d. an effective credit policy will avoid all potential bad debt

2) What would be the maturity value of a 90 day loan for $85,000 at 11% interest? assume 360 days per year.

a. $85000.00

b. $82662.50

c. $2337.50

d. $87337.50